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P&G net profit increase by 20 per cent

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P&G net profit increase by 20 per cent

Higher other income, high margins and volume growth in the Whisper brand has helped consumer goods major Procter & Gamble Hygiene and Healthcare post a 20 per cent increase in net profit in third quarter.

The company has posted a net profit of Rs 21 crore for the quarter ending March 31, 2001, compared to Rs 17.4 crore for the same quarter last year. According to analysts tracking the sector, the company achieved a decent bottomlines growth because of the volume growths of Whisper brand.

Revenues declined because of the termination of the shampoo manufacturing agreement between PGHH and Procter & gamble Home Products. Earlier PGHH manufactured shampoos for PGHP. With the termination of the agreement, the revenue also stopped.

Recently the company lowered the price of Whisper Ultra from Rs 85 to Rs 60 to offer better value to consumers. Analysts view this as a means to gain volumes.

The company's other income has gone up to Rs 3.87 crore from Rs 1.5 crore last year same quarter.

The feminine hygeine business continues to grow. Healthcare business has increased sales despite heavier competition and general slowdown affecting the FMCG sector. Given the scenario P&G hopes to maintain sales and profit growth at this level for the rest of the financial year 2000-2001.

As of now, P&G India has brands under seven global business units: baby care (Pampers), Beauty care (Pantene and Head & Shoulders), fabric and home care (Ariel), feminine protection (Whisper, Tampex), food and beverages (Pringles), health care (Vicks) and tissue and towels (Tempo).

PGHH however manufactures and markets only the Vicks range of cough and cold medicines and Whisper feminine hygeine products.


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