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Nirmal Bang Report
Gillette India Ltd.'s Q2 FY22 (June-ending financial year) performance missed our estimates. Lower sales from oral care segment led to slight miss on revenue front, while margin sharply missed our estimate due to high cost of goods sold pressure.
As per management, both grooming as well as oral care businesses, which recorded high single digit growth, grew ahead of their categories.
Grooming business revenue came in at Rs 4.3 billion, coming in line with our estimate. Oral care business revenue came in at Rs 1.4 billion, lower than our estimate of Rs 1.5 billion.
Overall gross margin was down 440 basis points YoY and 100 bps QoQ at 50.6%.
In the long run, we remain optimistic about the company's ability to add new users (male and female) to the Gillette franchise, thereby driving topline on the back of its market leadership, consumer proposition, innovation and execution at the retail level.
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