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P&G’s March quarter ad spends down 14 per cent

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P&G’s March quarter ad spends down 14 per cent

Procter & Gamble Hygiene and Health Care Ltd (PGHHCL) reported 14.35 per cent increase in net sales for the quarter ended March 31, 2011 at Rs 2,344 million from Rs 2,050 million in corresponding the quarter last year. However, the company’s net profit saw a dip of 10.8 per cent to Rs 389 million from Rs 436 million a year ago. Advertising and sales promotion expenses of the company reduced by 13.98 per cent in the quarter to Rs 378 million from Rs 441 million a year ago.

According to a company statement, it registered 21 per cent increase in volume growth during the period, increasing its market share in the feminine hygiene business. The feminine hygiene posted 23 per cent gross sales growth, driven by growth of Whisper Choice and Ultra. Health care category sales were up by 11 per cent largely driven by growth in Vicks Cough Drops of 28 per cent and Vicks Inhaler of 24 per cent. The statement also mentioned that earnings were down for the quarter due to shift in product mix and increase in commodity costs.

Sharing perspective on the results for the quarter ended March 31, 2011, Shantanu Khosla, Managing Director, Procter & Gamble Hygiene and Health Care Ltd (PGHHCL), said, “At PGHHCL, we are committed towards delighting our consumers via providing superior and innovative product propositions. We will continue to focus on leveraging our strong core capabilities to touch and improve the lives of more and more Indian consumers, now and for generations to come.”

Total advertising and sales promotion spends of the company for nine months ended March 31, 2011 stood at Rs 1,395 million while it was Rs 1,107 for the same period last year.


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