P&G Health stock slips 4% on weak Q4 performance; Rs 60 dividend announced

Procter & Gamble Health stock drops: Stocks of Procter & Gamble Health (P&G Health) dropped as much as 4.16 per cent to hit an intraday low of Rs 5,138.75 per share on Thursday, August 22, 2024. 

The drop in the stock price of Procter & Gamble Health came after the company announced a weak set of June quarter results (Q4FY24).

The company’s sales fell 5 per cent to Rs 277 crore versus the previous year, owing to changes in the go-to-market model. 

P&G Health’s profit (before exceptional items and tax) slipped 3 per cent year-on-year (Y-o-Y) to Rs 43 crore for the quarter under review. The exceptional items include impairment charges amounting to Rs 20 crore, the company said in a statement. 

For the fiscal year ended June 30, 2024, the company recorded sales of Rs 1,129 crore, down 6 per cent versus a year ago. Profit (before exceptional items and tax) for the fiscal year ended June 30, 2024 dropped 7 per cent Y-o-Y to Rs 294 crore.

"Our results this quarter reflect the typically seasonality of shipments during this period. In addition, we’ve made choices to strengthen the execution of our integrated strategy with the deployment of a transformed go-to-market model. We’re confident these changes will deliver superior reach, distribution, retail execution and improve our long-term competitiveness. Our strategy remains anchored on a focused product portfolio where performance is a key driver of brand preference, superiority (across product performance, packaging, brand communication, retail execution and value), constructive disruption and an agile, accountable organisation. This integrated strategy continues to guide our efforts to generate sustainable, balanced top- and bottom-line growth and value creation,” said Milind Thatte, managing director, P&G Health India.

The Board of Directors also recommended a final dividend of Rs 60 per equity share, for the financial year ending June 30, 2024. 

“Considering the interim dividend of Rs 200 per share (including the one-time special dividend of Rs 150 per share), the total dividend payout for the fiscal will be Rs 260 per share, subject to the approval of the final dividend by shareholders of the company at the ensuing 57thAnnual General Meeting,” P&G Health said.

“We continue to navigate the evolving market dynamics with resilience and explore innovative solutions to ensure our trusted, quality brands remain the preferred choice for healthcare professionals and consumers alike”, Thatte added. 

The market capitalisation of P&G Health is Rs 8,622.63 crore, according to Bombay Stock Exchange (BSE). The company falls under the BSE500 category.

At 11:35 AM, shares of P&G Health were trading 3.13 per cent lower at Rs 5,194.55 per share. In comparison, BSE Sensex was trading 0.21 per cent higher at 81,075.70 levels.