The board of directors of Gillette India is scheduled to meet on May 8, 2019, to consider and approve unaudited financial results for the quarter ended March 31,2019 (Q4FY19).
The personal products company delivered strong double-digit growth for the second consecutive quarter this year, driven by robust volume growth, category development and execution excellence.
In December quarter (Q3FY19), the company had posted 17 per cent year on year (YoY) growth in sales at Rs 476 crore, on the back of brand fundamentals, strength of the product portfolio and improved in-store execution. The net profit, however, down 8 per cent YoY at Rs 54 crore, due to cost inflation, expiry of tax benefits and higher marketing spend on brand building initiatives to accelerate growth.
The company had said both grooming and oral care businesses recorded double-digit growth ahead of their categories. This growth was driven by superior communication, category expansion and go-to market initiatives.
Analysts at Nirmal Bang Securities believe the constant thrust on building the portfolio and targeting new consumers will help the market leader gain further share and deliver profitable growth. Also, there is further headroom for improvement in the product mix and Gillette’s new product launches indicate clearly that the focus is more on the mid-premium segment.
"Therefore, we believe there is potential for earnings to recover in the coming quarters. The company’s innovation capability, competitive performance and cost efficiency continue to remain key investment drivers," the brokerage firm said in a result update. The stock, however, is trading above 12-month target price of Rs 7,500 per share.