P&G Hygiene Q2 result: Profit jumps as lower costs offset dip in sales

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Indian consumer goods maker Procter & Gamble Hygiene and Health Care reported higher second-quarter net profit on Wednesday, as lower costs countered a small drop in sales.

The company reported a profit of 2.29 billion rupees ($27.6 million) for the quarter ended Dec. 31, up over 10 per cent from the same period last year.

P&G Hygiene, which is known for products like "Whisper" sanitary pads and "Vicks" cold medications, said its total expenses fell nearly 3 per cent to 8.41 billion rupees, helped by lower raw material and finance costs.

Cost of materials consumed, which includes ingredients like benzoic acid, parabens, and salicylic acid, fell 4.7 per cent.

The company attributed the profit growth to its product price-mix and moderating cost inflation compared to the year-ago period.

India's average inflation for the three months ended Dec. 31 eased to 5.37 per cent from 6.12 per cent in the year-ago period.

However, the company said its sale of products slipped 0.3 per cent to 11.31 billion rupees, owing to a "challenging operating environment".

The results come at a time when other consumer goods makers like Hindustan Unilever, Nestle India, and Britannia Industries are grappling with consumers cutting back on spending.

Macroeconomic headwinds continued to put pressure on consumers' wallets, said analysts at Jefferies in a note.

Last week, the company's American parent Procter & Gamble beat second-quarter core profit estimates due to strong demand for daily-use products. However, it lowered its annual profit forecast for FY24.

Separately, P&G Hygiene declared an interim dividend of 160 rupees per share for the financial year 2023-24.