Gillette - Smooooooootttthh

Gillette - Reports Highest Ever Annual Net Profit

Gillette India continues its strong growth in the FY 2005, recording net sales of Rs4.53bn, a growth of 11.5% growth over last year. The company ended the year with a profit before tax at 24% of net sales. The year 2005 also marked Gillette India reaching it highest-ever annual net profit figure at Rs687mn, a growth of 12.3% over FY 2004. The company proposed a dividend for the FY 2005 at 100% (Rs10 per share).

The company’s Grooming Business grew by 12%. During the first quarter of 2005, the company extended its Mach 3 Turbo proposition to the younger audience with the launch of Mach 3 Turbo Champion. This launch was supported by a high impact media campaign and the product exceeded its distribution and sales targets. Mach 3 sales recorded an impressive 22% growth in FY 05. Vector Plus delivered record performance with an impressive volume growth of 72%.

In the Personal Care category Gillette India continued to grow its value share, with a 22% growth in net sales over FY 04. The company further consolidated its position in the shave gels segment with the successful launch of the 25 gm pack of Gillette Tube Shave Gel.

2005 was a record year for the company’s Oral Care Business, which clocked a significant 35% growth in net sales. In the fourth quarter of 2005, the company launched the new Oral-B Cross Action Power thereby consolidating its position in the power-brushing segment. The company further consolidated its market position in the alkaline batteries segment.

According to Managing Director Zubair Ahmed, “We have been able to drive value leadership in our core categories with a strong brand franchise, as a result of sustained and aggressive investments in advertising and marketing innovations during the year. Strategic brand investments we made in 2005 helped in our endeavour of upgrading the Indian consumer to superior technology products.”

In the fourth quarter of 2005, the company recorded net sales of Rs1.16bn a growth of 18% over Rs983bn last year. Net profit for the fourth quarter stood at Rs150mn a growth of 118% over Rs68mn last year. In line with its commitment to franchise building for a long-term impact, the company continued its progressive investments in advertising and sales promotions this quarter.

- India Infoline