Corporate results: Gillette’s net earnings up 288%

Company posted after-tax profit of Rs74m in Jan-Mar period.

KARACHI: Supported by improved margins, Gillette Pakistan boosted its net earnings by nearly three times during the three-month period that ended on March 31, 2015, the company revealed in its quarterly report on Monday.

The maker of famous range of Gillette razors and shaving products posted an after-tax profit of Rs74 million or Rs4 per share during the quarter, up by a staggering 288% compared to Rs19 million or Re1 per share it earned in the same quarter last year.

A subsidiary of Series Acquisition B.V., Netherlands – which is a wholly owned subsidiary of Procter & Gamble (P&G) – grossed Rs600 million in sales during the review period, up 8% compared to Rs555 million of the corresponding period of 2014.

The strong quarterly performance also offset the impact of slower growth in July-December period and helped the company boost its net earnings for the nine-month period ending March, 2015.

Despite reporting a 4% year-on-year decline in its nine-month revenues, which clocked in at Rs1.6 billion, the company’s profits for the period increased by 41% to Rs104 million or Rs5.4 per share compared to Rs74 million or Rs3.8 per share it earned in the same period last year.

The strong quarterly performance was driven by improved margins, which increased to 31% in Jan-March quarter compared to 10% of the same quarter of 2014.

Published in The Express Tribune, April 28^th,  2015.

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