Procter & Gamble Hygiene and Health Care Ltd. reported a weak set of June-quarter earnings, with profit, revenue and operating margins all declining year-on-year as sales moderated and profitability came under pressure. The results were approved by the company's board on July 29.
The FMCG company posted a 34.3% decline in consolidated net profit to Rs 126 crore for the quarter ended June 30, compared with Rs 192 crore in the corresponding period last year. A lower tax expense partially cushioned the earnings decline, with tax outgo falling to Rs 43.4 crore from Rs 72.6 crore a year earlier. The financial statements also show profit after tax at Rs 126.27 crore and tax expense of Rs 43.36 crore.
Revenue from operations declined 4.9% year-on-year to Rs 892 crore, compared with Rs 937 crore in the year-ago quarter, reflecting weaker sales during the period. The company reported revenue from operations of Rs 891.46 crore in its financial statements.
Operating performance also weakened. EBITDA fell 36.1% year-on-year to Rs 170 crore from Rs 266 crore, while the EBITDA margin contracted sharply to 19.1% from 28.4% in the corresponding quarter last year, highlighting significant pressure on profitability.
P&G Hygiene operates across health care and hygiene products, with businesses spanning ointments, creams, cough remedies and feminine hygiene products. The company reports these under a single operating segment for financial reporting purposes.
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