Updated January 31st, 2024 at 15:41 IST

P&G Hygiene reports solid Q2 performance despite sales dip; interim dividend announced

P&G Board has announced an interim dividend of Rs 100 per share and a special dividend of Rs 60 per share.

Reported by: Business Desk
P&G Hygiene Q2 earnings | Image:P&G Health
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P&G Hygiene Q2 earnings: Fast-moving consumer goods company Procter & Gamble Hygiene and Health Care has posted a net profit of Rs 229 crore for the quarter ended December 31, 10 per cent higher than the Rs 207 crore reported during the year-ago quarter. The company has declared an interim dividend of Rs 160 per share for the financial year 2023-24. P&G Board has announced an interim dividend of Rs 100 per share and a special dividend of Rs 60 per share.

P&G Hygiene attributed this profit surge to effective cost management, with total expenses falling nearly 3 per cent to Rs 841 crore.

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Lower costs counter sales dip

Despite a modest 0.3 per cent dip in product sales, totaling Rs 1,131 crore, the company's profitability received a boost from reduced expenses. Cost of materials consumed, encompassing key ingredients like benzoic acid, parabens, and salicylic acid, experienced a significant 4.7 per cent decline.

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P&G Hygiene highlighted the positive impact of its product price-mix strategy and effective cost moderation, attributing the profit growth to these key factors. Lower raw material and finance costs, coupled with a favorable product pricing strategy, contributed to the overall financial success.

Macroeconomic challenges

The challenging operating environment mentioned by the company aligns with the broader macroeconomic headwinds affecting consumer goods makers. Analysts at Jefferies noted that these macroeconomic pressures are impacting consumers' spending patterns, a trend observed across the industry, affecting companies like Hindustan Unilever, Nestle India, and Britannia Industries.

Despite the challenges, LV Vaidyanathan, Managing Director of Procter & Gamble Hygiene and Health Care Ltd., expressed confidence in the company's integrated growth strategy. This strategy focuses on a product portfolio in daily-use categories, emphasising performance, brand communication, and retail execution.

(With Reuters inputs.)

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Published January 31st, 2024 at 15:41 IST