P&G Bangladesh terminates distribution pact with Gillette India

25 Sep 2024 , 12:06 PM

Gillette India Ltd, a maker of shaving goods, announced on Tuesday (September 24) that Procter & Gamble Bangladesh Private Ltd has terminated its distribution agreement with the company, expiring December 31, 2024.

This is to inform that today, the company received a letter from its distributor, Procter & Gamble Bangladesh Private Limited, notifying the termination of the Distribution Agreement with the company, which will take effect on December 31, 2024, Gillette stated in a stock exchange filing.

Sales under this agreement represented approximately 2% of the company’s total net sales in fiscal year 2023-24.

As a result of this termination, the company will see a corresponding decrease in net sales under this Agreement. In fiscal year 2023-24, the Distributor Agreement contributed 2% to the company’s total net revenues.

However, Gillette India has assured that the termination will have no substantial impact on its total revenues. There is no material impact on the company’s profits due to this termination, Gillette India explained.

Gillette India recorded a 26.4% increase in profit after tax (PAT) to ₹115.97 Crore in the June quarter. The company, which follows the July-June financial year, declared a profit of ₹91.75 Crore last year.

The company’s revenue from operations climbed by 4.17% to ₹645.33 Crore in the current quarter, up from ₹619.44 Crore the previous year. Gillette India stated that sales growth was backed by a comprehensive portfolio, excellent brand foundations, and superior retail execution.

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