Nov 13 (Reuters) – Gillette India reported a 10.8% rise in second-quarter profit on Friday, helped by cost cuts that mitigated the impact of higher commodity costs.
o The company, owned by US consumer goods company Procter & Gamble, posted standalone net profit of 1.59 billion rupees ($16.89 million) for the quarter ended September 30, compared with 1.44 billion rupees a year earlier
o Revenue from operations rose 4.4% to 8.46 billion rupees from 8.11 billion rupees a year earlier, while total expenses grew 2.2%
o Revenue from Gillette India’s grooming business, which accounts for about 80% of total sales, rose 2% to 6.79 billion rupees, while segment profit climbed 18.5%
o Gillette, which makes shaving razors, creams and Oral-B toothbrushes, said its productivity programme helped mitigate significant commodity cost pressures, but did not specify the cost-saving measures undertaken
o Brokerage Systematix said gross margins across its coverage of 10 consumer staples companies contracted 120 basis points year-on-year in the September quarter, as price increases did not fully offset higher input costs
o Late last month, Gillette India’s parent Procter & Gamble posted better-than-expected first-quarter results, even as rising commodity costs weighed on margins
($1 = 94.1475 Indian rupees)
(Reporting by Surbhi Misra in Bengaluru; Editing by Jochelle Mendonca)