The Hindu Business Line : P&G net falls 36% on lower volumes

Procter & Gamble Hygiene and Health Care Ltd for the year ended June 30, 2007, posted a net profit of Rs 89.82 crore, down 36 per cent, compared with last year’s 139.51 crore.

The sales for the period decreased by 4.6 per cent to Rs 540.38 crore compared with Rs 566.73 crore of the last year.

This figure is not comparable to last year’s as they do not include the divested detergent contract manufacturing business. “The volumes have gone away since we do not manufacture detergents for our sister company any more,” said Mr Bharat Patel, Chairman.

Core biz sales

The sales of the core business of the company Health Care stood at Rs 256.4 crore up five per cent while Feminine Hygiene business recorded sales of Rs 282 crore up 24 per cent. Sales of Vicks Action 500 grew by 15 per cent, Vicks Vaporub by 11 per cent and Vicks Inhaler by 10 per cent. In the feminine hygiene category, the latest entrant Whisper Choice aimed at the mid-tier consumer, doubled its sales compared with last year.

During the year, the company set up two manufacturing facilities at Baddi, Himachal Pradesh at the cost of Rs 22 crore.

The company also commenced expansions of feminine hygiene products at its Goa manufacturing plant with an expenditure of Rs 19 crore.