Procter & Gamble Q2 net sales jump 33% to Rs 470.6 cr

FMCG major Procter & Gamble Hygiene and Health Care Ltd has posted a 33 per cent growth in sales for the second quarter ended December 31, 2012, powered by the growth in sale of products catering to the feminine care segment.

But a higher expenses outgo, including a one-time contract termination charge of Rs 7 crore, saw the net profit edge up only marginally during the quarter compared to the same period in the earlier fiscal.

The company registered net sales of Rs 470.57 crore in Q2 FY13 compared with Rs 354.32 crore in the corresponding quarter in the previous fiscal.

P&G attributed the performance to “category expansion, consumer initiatives and pricing combined with a weak base period’’.

Feminine care, personal healthcare

The feminine care recorded a double-digit gross sales growth of 45 per cent because of category growth, pricing to cover inflation and consumer insights. The lower spend on promotion also was a contributory factor.

The personal healthcare segment also witnessed a sales growth of 19 per cent.

Gross, net profit

The profit before tax (PBT) was higher at Rs 72.71 crore in Q2 of the current fiscal for the company (its fiscal is from July to June) compared with Rs 67.44 crore during the same period in the previous year.

However, profit after tax (PAT), impacted by high inflation, distribution costs, unrealised forex losses and a one-time contract termination charge of Rs 7 crore, was down at Rs 53.99 crore (Rs 51.19 crore).

The EPS for the quarter edged up marginally to Rs 16.63 (Rs 15.77).

Shantanu Khosla, Managing Director, said its business model of delivering value to consumers “combined with effective pricing and productivity’’ was helping it to register both top-line and bottom-line growth.

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