Brands
Gillette India ups Ad exp 40 per cent in FY-2014
BENGALURU: Gillette India Limited (Gillette) reported a 40.2 per cent higher advertisement and sales promotion (ASP) spend for its year ended 30 June 2014 (FY-2014) at Rs 419.40 crore (24 per cent of net Total Income from Operations or TIO) as compared to the Rs 299.16 crore (20.8 per cent of TIO) in the year ended 30 June 2013 (FY-2013).
ASP in the quarter ended 30 June 2014 (Q4-2014) was 10.7 per cent lower at Rs 110.56 crore (23 per cent of TIO) versus Rs 123.84 crore (27.2 per cent of TIO) in the immediate trailing quarter (Q3-2014) and was 39.8 per cent more than the Rs 79.06 crore(20.1 per cent of TIO) in the year ago quarter Q4-2013.
Note: (1) 100,00,000 = 100 lakh = 10 million = 1 crore.
(2) Gillette financial year closes of 30 June, hence, the quarter ended30 June is Q1, while the quarter ended 30 September is Q2; quarter ended31 December is Q2 and quarter ended 31 March is Q3.
Across 10 quarters starting Q3-2012 (quarter ended 31 March 2014) until Q4-2014 (quarter ended 30 June 2014), the company ASP shows an upward linear trend both in terms of absolute value as well as percentage of TIO.
The company’s TIO has also been moving steadily upwards. In FY-2014, TIO at Rs 1749.49 crore was 21.7 per cent more than the Rs 1437.72 crore in FY-2013. TIO in Q4-2014 at Rs 479.72 crore was 5.3 per cent more q-o-q and 22.1 per cent more y-o-y.
Please refer to Fig 1 below.
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Gillette’s ASP is made up of two components – advertisement and trade incentives. Please refer to figure 1A below for the breakup and the ratio. As is evident, the company’s ad spend ratio has gone to 1.41 and 1.42 times as compared to trade incentives in FY-2012 and FY-2013 respectively. In both FY-2010 and FY-2011 ratio of advertisement to Trade Incentives was 1.2.
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Gillette PAT has been steadily going down. In FY-2014, Gillette reported PAT of Rs 51.42 crore (2.9 per cent of TIO) as compared to the Rs 87.16 crore in FY-2013, though in Q4-2014, the company’s PAT at Rs 16.76 crore (3.5 per cent of TIO) was almost double (1.98 times) the PAT of Rs 8.48 crore (1.9 per cent if TIO) in Q3-2014 and was 1.8 per cent more than the Rs 16.47 crore (4.2 per cent of TIO) in Q4-2013. PAT has been showing a downward linear trend across five years starting FY-2010 to FY-2014 and across the 10 quarters under consideration, both in terms of absolute value as well as in terms of percentage of TIO. Please refer to Fig 2 below.
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Three segments contribute to the company’s Income from operations (TIO) – grooming, portable power and oral care. Grooming segment includes blades, razors and toiletries, portable power includes batteries and oral care includes toothbrushes, toothpaste and oral care products. Gillette India’s products are sold under the brand Gillette with sub-brands like Fusion and Mach 3. Gillette India caters to Men’s personal care products such as razors, blades, shaving creams, gels, men’s skincare products, among others in India.
The company says that sale of the grooming segment was up 19 per cent in FY-2014 versus FY-2013, oral care saw a growth of 31 per cent in FY-2014 as compared to last year and portable power saw a growth of 21 per cent in the current year as compared to previous year.
Click here to read the unaudited financial statement
Brands
Info Edge reshuffles senior roles, Ambrish Singh to 99acres, Bhisham Dhingra to lead Shiksha strategy
Leadership changes at Shiksha and 99acres aim to drive sharper growth focus
MUMBAI: Info Edge (India) Limited has approved an internal reorganisation of its education and real estate verticals, setting the stage for leadership changes aimed at sharpening execution and accelerating growth. The move, cleared by the board on April 14 through a circular resolution, will come into effect from May 1, 2026.
The restructuring impacts the company’s Shiksha and 99acres businesses, two key pillars in its portfolio, and involves role changes for senior management personnel. As part of the reshuffle, Ambrish Kumar Singh, previously executive vice president and head of sales and customer delivery for Shiksha, has been redesignated as executive vice president and head of sales and sales enablement at 99acres. A long-time company leader since 2003, Singh is expected to focus on boosting business performance, strengthening client relationships and building high-performing teams in his new role.
Meanwhile, Bhisham Dhingra, who led sales and customer delivery at 99acres, will now take on an expanded mandate as head of sales, strategy and client delivery for Shiksha. With over two decades of experience across global and Indian organisations, Dhingra will spearhead growth strategy, corporate sales and client engagement for the domestic education vertical.
Both executives will continue as senior management personnel, albeit with revised responsibilities aligned to the company’s broader restructuring goals.
Info Edge said the changes are part of ongoing efforts to leverage leadership expertise across business lines and improve operational effectiveness. The company added that the reshuffle is designed to drive stronger outcomes by aligning talent with evolving business priorities.
As Info Edge continues to fine-tune its structure, the latest leadership moves suggest a clear intent to keep its core platforms nimble, competitive and ready for the next phase of growth.
