Gillette India stock falls 3% after Bangladesh distributor terminates pact
Source: Business Standard
Gillette India share price today dipped 3 per cent at Rs 8,501.10 a piece on the BSE in intraday deals. This came after the personal care firm in an exchange filing revealed that one of its distributors Procter & Gamble Bangladesh has terminated distribution agreement with the company, which will be effective December 31, 2024.
At 11:35 AM, Gillette India stock price slipped 2.60 per cent at Rs 8,541.25 per share on the BSE. By comparison, the BSE Sensex was flat at 84,915 level.
“As a consequence of this termination, the Company will have an impact of proportionate drop in net sales under this Agreement. For the financial year 2023‐24, the net sales under the said Distributor Agreement accounted for 2 per cent of the total net sales of the Company. There is no material impact on Company’s profits due to this termination,” the company said in an exchange filing.
Gillette India, a part of Procter & Gamble (P&G), specialises in manufacturing and selling branded fast-moving consumer goods in the grooming and oral care sectors. The promoter group owns 75 per cent equity of the company, while 25 per cent is held by public shareholders. The promoter group includes Gillette Diversified Operations and Procter & Gamble Overseas India Holdings BV.
Its products are available through various retail channels, including mass merchandisers, grocery stores, membership clubs, drugstores, department stores, and convenience stores.
Gillette’s manufacturing facilities are located in Bhiwadi, Rajasthan, and Baddi, Himachal Pradesh, along with additional third-party manufacturing sites across India.
On the financial front, the company registered a 26.4 per cent rise in profit after tax (PAT) to Rs 115.97 crore for the June quarter. The company, which follows the July-June financial year, had reported a profit of Rs 91.75 crore in the year-ago period
Its revenue from operations increased 4.17 per cent to Rs 645.33 crore during the quarter under review from Rs 619.44 crore in the corresponding period a year earlier.
Tha market capitalisation of Gillette India Foods is Rs 27,792.26 crore. Its shares are trading at a price to earnings multiple of 69.41 times with an earning per share of Rs 126.35.
First Published: Sep 25 2024 | 11:59 AM IST
