Gillette India reported a disappointing set of numbers for the quarter. Revenue (net of excise duty in the base quarter) remained flat on yoy basis to Rs409.8cr. On account of higher employee and other expenses, EBITDA declined 11.1% yoy to Rs59.7cr and EBITDA margin contracted by 191bps yoy to 14.6%. PAT for the quarter declined 8.1% yoy to Rs34.6cr.
Segmental revenues are not comparable on a yoy basis because of excise duty treatment. However, for the reported numbers, the grooming segment reported revenue decline of 1.1% yoy. However, the decline in revenue is much sharper in the oral care segment at 25.0% yoy.
On the EBIT front, the grooming segment reported a 83.2% yoy growth, however, the oral care segment reported EBIT loss of Rs12.0cr against an EBIT profit of Rs21.3cr.
Employee cost jumped 85.9% yoy (399 bps yoy higher as a percentage of net sales).
Advertisement expense for the quarter was down 481bps yoy as a percentage of net sales to 13.0%.
Other expenses were up by 494bps yoy as percentage of net sales.
Depreciation cost were down 13.2% yoy, however, interest cost was up 53.7% yoy.
Other income for the quarter rose 74.9% yoy to Rs8.6cr, restricting the PAT decline to 8.1% yoy.
The company recommended a final dividend of Rs23 per equity share for the year ended June 30, 2018.
Gillette India Ltd is currently trading at Rs. 6,415.45, down by 23.35 points or 0.36% from its previous closing of Rs. 6,438.80 on the BSE.
The scrip opened at Rs. 6,486.80 and has touched a high and low of Rs. 6,486.80 and Rs. 6,415.45 respectively. So far 859 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.
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