P&G Hygiene gains after decent Q3 numbers

Procter & Gamble Hygiene & Health Care rose 2.69% to Rs 14301.15 after the company's net profit rose 4.60% to Rs 102.85 crore on 28.12% rise in net sales to Rs 973.26 crore in Q3 March 2022 over Q3 March 2021.

Profit before tax (PBT) climbed 16.92% year-on-year to Rs 151.10 crore in Q3 March 2022. Cost of raw materials consumed surged 39.17% to Rs 347.15 crore during the quarter.

Revenue was boosted by strong brand fundamentals, strength of its trusted product portfolio, strong retail execution and a one-time other income during the quarter from intercompany sale of inventory. Excluding the one-time income, comparable sales are up 17% vs year ago.

The net profit was driven by continued focus on productivity and a one-time hurt due to retrospective tax law change. Excluding this one-time impact, PAT was up 20% vs year ago, despite commodity inflation.

Madhusudan Gopalan, managing director, Procter & Gamble Hygiene and Health Care said: "In a challenging market environment, we recorded strong double-digit sales growth driven by strong brand fundamentals and improved market execution. Excluding the one-time impact, our productivity efforts led to a strong double digit profit growth. As we navigate the challenging cost environment, we will continue to focus on improving productivity by leveraging advertising and promotion analytics, strengthening our product mix and driving supply chain efficiencies. In the long-term, we will continue to focus on driving balanced top and bottom-line growth enabled by our superiority strategy, improving productivity, leading constructive disruption, and strengthening our organization and culture."

Procter & Gamble Hygiene and Health Care is one of India's fastest growing FMCG companies that has in its portfolio Whisper - India's leading Feminine Hygiene brand, and Vicks - India's No. 1 Health Care brand and Old Spice.

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