Consumer goods firm Procter & Gamble Hygiene and Health Care (PGHHCL) on Tuesday reported 5 per cent year-on-year (YoY) decline in profit after tax (PAT) at Rs 136.84 crore for the first quarter ended September 30, 2019, impacted by increased spending on advertising and innovation.
“The fast moving consumer goods (FMCG) company had posted net profit of Rs 144.11 crore in the same period last year,” Procter & Gamble Hygiene and Health Care said in a filing to the Bombay Stock Exchange.
The company, that operates in the feminine hygiene and healthcare categories with brands such as Whisper, Vicks and Old Spice, saw sales rise by 8 per cent to Rs 852.14 crore in Q1 FY20 as compared to Rs 791.80 crore in Q1 FY19, helped by strong brand fundamentals, it said in the regulatory filing.
During July-September quarter, total expenses increased to Rs 681.78 crore as against Rs 594.73 crore during the same period previous year.
The profit before tax stood at Rs 181.38 crore versus Rs 220.63 crore in the corresponding period last year.
In a challenging market environment, the feminine care business registered strong double-digit growth in the quarter, while the health care business grew ahead of the market, the company said in its earnings report.
Commenting on Q1 earnings, Madhusudan Gopalan,Managing Director, Procter & Gamble Hygiene and Health Care Ltd. said, “In a challenging macro-economic environment our focus on raising the bar on superiority, improving productivity, and strengthening the organization culture has enabled us to deliver sustained growth during the first quarter.”
“We will continue to remain focused on these strategies in line with our aim to drive balanced sales and profit growth,” Gopalan said.
Following Q1 earnings, shares of Procter & Gamble Hygiene and Health Care closed trade at Rs 11,853 apiece, down 2.35 per cent, on the BSE.