Gillette India-Gillette India FY11 net down 37.16% at Rs 86.15cr

Gillette India today posted 37.16% decline in net profit at Rs 86.15 crore for its fiscal ended June 30, because of increase in commodity prices and high marketing expenses.

The company posted 23.97% increase in net sales at Rs 1,056.86 crore, as against Rs 852.48 crore in the previous fiscal, on the back of good growth across all its businesses, Gillette India said in a statement.

The company, which sells men's grooming products, has recommended a dividend of Rs 15 per share (on face value of Rs 10 each) for the financial year ended June 30, 2011.

Gillette said its profit during the year declined because of "a steep increase in commodity prices as well as higher investments in marketing and distribution initiatives".

It said earnings were impacted by the need to invest in competitive defence, category growth and distribution expansion initiatives.

During the fiscal, the company's advertising and sales promotion increased by 64.95% to Rs 278.36 crore as against Rs 168.75 crore spent in the year-ago period.

"In order to leverage this long term opportunity and sustain accelerated growth rates we have stepped up our investments in creating new products and marketing spending which was up by Rs 110 crore," Gillette India Managing Director Shantanu Khosla said in the statement.

The company has announced the appointment of Nayantara Balu as an additional director with immediate effect until the date of the next annual general meeting to be held on October 31, 2011.