The Hindu Business Line : Gillette India net rises 36 pc

GILLETTE India Ltd (GIL) today announced 36.6 per cent higher net profit at Rs 61.22 crore for the 12 months ended December 31, 2004 on 9.73 per cent growth in sales at Rs 446.57 crore.

The company said in a statement that this was highest-ever net profit posted by it in the country, while proposing 85 per cent dividend.

According to its Managing Director, Mr Zubair Ahmed, "Our key achievement has been a profitable growth with a very healthy franchise of our brands, as a result of stepped up media investments."

Describing 2004 as a "landmark" year for GIL, he said that the company achieved value leadership in three out of the four categories it operates in. The advertising and sales budget was hiked by about 30 per cent to Rs 58.29 crore during 2004.

It said the grooming business grew by 14 per cent during 2004 and Gillette Mach3Turbo, launched during the second quarter, exceeded its distribution and sales targets. Gillette Vector Plus grew at 17 per cent during the same period.

The company's oral care business clocked 8 per cent growth and GIL further consolidated its leadership in the alkaline batteries segment, growing volumes by 41 per cent. In the personal care category, Gillette India continued to grow the value share of the market, with a volume sales growth of 10 per cent.

For the fourth quarter ended December 31, 2004, net sales were up 10 per cent to Rs 98.32 crore, while net profit grew seven times to Rs 6.83 crore. During 2004, GIL continued to be a zero debt company, generating Rs 57 crore surplus cash.

Despite several attempts, GIL Chairman, Mr Saroj K. Poddar, could not be reached for comments. But earlier this week, he had said that there would be a "significant" step up in the advertising and sales budget for 2005 and that he was sure that the company had a vast growth potential. Mr Poddar had also expressed ignorance about the implications of the global acquisition of Gillette by Procter & Gamble but reiterated that he had no intention of selling off his 15 per cent stake in the Indian company in any event. He is the single largest shareholder in GIL.

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