FMCG products maker Procter & Gamble Hygiene and Health Care Ltd reduced its advertising and sales promotion spends by 45% YoY during the quarter ending June 30, 2023.
The company, which follows the July-June financial year, spent Rs 53.54 crore on advertising and sales promotion in the June quarter of the year 2024, a sharp decline from Rs 96.92 crore spent in the corresponding quarter of the previous fiscal.
The ad spent in the previous quarter ending March 31, 2023, was at 106.53 crore.
The company reduced its ad spends by 9.5% in the full year over the previous year.
The FMCG giant reported an over three-fold rise in Profit After Tax (PAT) at Rs 151.24 crore in the June quarter.
The company had reported a PAT of Rs 42.55 crore in the corresponding quarter of the previous fiscal.
Its net sales were 12.31 per cent higher at Rs 848.74 crore during the quarter under review, as against Rs 755.65 crore in the year-ago period, Procter & Gamble Hygiene and Health Care Ltd (PGHH) said in a regulatory filing.
"PAT for the quarter was Rs 151 crore, versus Rs 43 crore a year ago because of strong base business growth and one-time help," a PGHH earnings statement said.
Its revenue from operations stood at Rs 852.53 crore, up 9.8 per cent in the June quarter.
PGHH's total expense was Rs 656.05 crore in the June quarter, down 9.42 per cent as against Rs 724.31 crore a year ago.
The total income of the company, which owns popular brands such as Vicks in healthcare and Whisper in feminine care, was up 10.3 per cent to Rs 862.63 crore.
For the financial year ended June 30, 2023, its PAT rose 17.78 per cent to Rs 678.14 crore. It was at Rs 575.75 crore in the year-ago period.
Its revenue from operations for the financial year grew marginally to Rs 3,917.90 crore. The same was Rs 3,900.92 crore for the financial year ended June 30, 2022.
This was "flat versus a year ago owing to a one-time other operating income and a pandemic-linked demand surge in the healthcare portfolio in the base period," the company said.
"We delivered a strong top- and bottom-line growth in the quarter, leading up to a resilient finish for the fiscal year despite a challenging operating environment. We continued to raise the bar on superiority and balancing innovation and industry-leading practices, while driving productivity in everything we do," PGHH Managing Director LV Vaidyanathan said.
Meanwhile, in a separate filing, PGHH said its board in a meeting held on Monday recommended payment of a final dividend of Rs 105 per equity share for the financial Year ended June 30, 2023.
The company also announced the appointment of Mukta Maheshwari as its Chief Marketing Officer effective from September 1, 2023.
Shares of Procter & Gamble Hygiene and Health Care Ltd on Monday settled 6.23 per cent higher at Rs 16,457.75 apiece on the BSE.