I am pleased to share with you that this Financial Year 2014-15 despite economicslowdown your Company delivered another year of sustained growth and strong results. Atyour Company we win with shoppers and consumers by providing consumer- preferred brandsand products that become leading value creators in their categories. The best measure ofwinning is Operating Total Shareholder Return (TSR) because it is a single coordinatedand integrated measure of growth and value creation that brings together winning withshoppers and consumers to deliver sales growth gross and operating margin improvementand asset efficiency. As I share with you your Company's annual performance for theFinancial Year 2014-15 I take pride in the fact that we delivered increased Net Sales off 1 971 crores up 13% versus last year with robust growth across all segments includingGrooming Oral Care and Portable Power.
The financial results of the Financial Year include a one-time facilitation incomebenefit of aboutRs 63 crores before tax related to the discontinuation of distribution ofDuracell batteries. We continued to drive sustained growth and delivered Profit After Tax(PAT) atRs 158 crores versus Rs 51 crores last year behind continued focus onproductivity operational excellence and cost optimization. Excluding the one-timeDuracell distribution discontinuation facilitation income PAT for the Financial Yearincreased toRs 116 crores versus Rs 51 crores last year.
Your Company has always believed that innovation is the lifeblood of our business. Weinvent brands and products that create and transform categories and that build consumertrial and create value in those categories for years- often for decades. This FinancialYear your Company has consistently sought to innovate in all we do to continue to touchand improve the lives of our consumers.
Your Company's focus on innovation and productivity was the key enabler behind brandbuilding and providing superior products to the consumers this year as well. On Gillette h? we completed the first ever global restage with a completely newlook design across all three variants viz. h ?Sensitive and Turbo with a bold new promise of 'Closer Shave with Zero RednessGuaranteed'. Gillette Guard the innovative Entry Level system registered its strongestyear on value volume and share growth since its launch in 2010. Oral-B has ledinnovation this year within the sensitive category by launching the new sensitivewhitening variant helping the brand grow disproportionately within sensitive tier.
Innovation is integral to every aspect of your Company's business and this is alsoreflected in the way we take our products to our consumers. For example your Companylaunched its Limited Edition INDIA razors with the word INDIA engraved on the handle toencourage cricket fans to continue extending their relentless support to the team. As anode to Indian cricket fans your Company launched its 'The Best A Fan Can Get' videosaluting all cricket lovers who showcase their passion and relentless support towardsCricket and cricketers. The video featured brand ambassador Rahul Dravid saluting thespirit of the Indian cricket fans who have made cricket what it is today. The video wasadjudged as the 'Most watched campaign on You Tube India for Q1 2015'.
We are rededicating ourselves to the power of execution. We are raising our standardsto be the best at execution. We are renewing focus on gaining trial among consumers at thepoint of market entry. We are recommitting to superior advertising to create awareness andsampling clearly superior-performing products to attract consumers to our brands.
At P&G sustainability means making every day better for people through how weinnovate and how we act. This strategy has inspired an enduring CSR strategy supported bytwo pillars - P&G Shiksha and Timely Disaster Relief. P&G's signature corporatesustainability program P&G Shiksha has till date built and supported over 450 (+120since last year) schools across the country that will impact the lives of over 800 000(+200 000 since last year) children. In this last year P&G Shiksha also forayed intoimproving learning outcomes by creating new frontiers for improving learning effectivenessacross their primary and secondary education. P&G over the past year continued itsefforts to provide timely aid and relief to families affected by natural disasters.P&G sent out relief aid to over 5 000 families affected by the J&K floodscomprising of P&G products.
Any company that wants to drive growth and create value in the long run needs to adopta mindset of 'winning'. Ensuring we deliver value to our stakeholders we will continue toinnovate so that we grow sales profit and cash more consistently and more sustainably tocreate value more reliably for you the Shareholders. We very warmly acknowledge thecontribution made by our consumers customers employees business partners and YOU ourvalued Shareholders to your Company's performance and for your dedication and commitmentto maximize Total Shareholder Return. Together we will continue in our journey towardstouching and improving more lives more completely.
|Mumbai ||B. S. Mehta |
|August 29 201 5 ||Chairman |