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P&G ups ad expenses as profit hit by slowing economy
BENGALURU: FMCG player Procter & Gamble Hygiene and Health Care Ltd (P&G) reported 7.6 percent year-on-year (y-o-y) growth in revenue from operations for the quarter ended 30 September 2019 (Q1 2020, quarter or period under review) as compared to the corresponding year ago quarter Q1 2019. P&G’s financial year is between 1 July and 30 June, hence the quarter ended September 30, 2019 is Q1 2020 in the case of P&G.
During a period in which the world is witnessing economic sluggishness, the company increased its advertising and sales promo spends for the quarter under review by 25.6 percent y-o-y to Rs 104.46 crore from Rs 83.2 crore. The company reported 5 percent y-o-y decline in Q1 2020 in Net profit after tax (PAT) at Rs 136.84 crore as compared to Rs 144.11 crore. EBITDA for the quarter under review declined 5.4 percent y-o-y to Rs 173.55 crore (20.4 percent of operating review) as compared to Rs 183.53 crore (20.2 percent of operating review).
P&G revenue from operations for Q1 2020 increased to Rs 852.14 crore from Rs 791.80 crore in Q1 2019. Total Income including other income increased 5.9 percent y-o-y in Q1 2020 to Rs 863.16 from Rs 815.36 crore.
Let us look at the other numbers reported by P&G
Total Expense in Q1 2020 increased 14.6 percent y-o-y to Rs 681.78 crore from Rs 594.73 crore. Expenses towards costs of raw materials and packaging materials increased 28.5 percent y-o-y to Rs 334.88 crore in Q1 2020 from Rs 260.51 crore. Purchase of traded goods declined 89.2 percent y-o-y to Rs 11.27 crore from Rs 104.27 crore.
Employee Benefits Expense in Q1 2020 increased 17.5 percent y-o-y to Rs 42.07 crore from Rs 35.81 crore. Finance costs declined 14.3 percent to Rs 0.36 crore from Rs 0.42 crore. Other Expense increased 25.6 percent y-o-y to Rs 185.91 crore from Rs 148.04 crore.
Company speak
The company says in a press release that in a challenging market environment, its Feminine Care business registered strong double-digit growth in the quarter, while its Health Care business grew ahead of the market.
P&G managing director Madhusudan Gopalan said, “In a challenging macro-economic environment our focus on raising the bar on superiority, improving
productivity, and strengthening the organisation culture has enabled us to deliver sustained growth during the first quarter. We will continue to remain focused on these strategies in line with our aim to drive balanced sales and profit growth.”
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FSS names Anand Krishnamurthi head of global digital delivery
Tech veteran to drive AI-first, cloud-led transformation in payments globally
CHENNAI: Financial Software and Systems (FSS), an AI-first payment infrastructure company, has appointed Anand Krishnamurthi as head of global digital delivery.
In his new role, Anand Krishnamurthi will lead FSS’s global digital delivery capabilities, focusing on AI-first and cloud-led transformation while ensuring predictable, high-quality outcomes for customers worldwide. He will be based in Chennai and report to V. Balasubramanian, CEO of FSS.
Bringing 28 years of experience in technology and digital transformation across banking, capital markets, financial services, and insurance, Anand has held senior leadership positions at Cognizant and NuSummit. He is recognised for scaling multi-geography delivery teams, leading mission-critical platforms, and embedding AI-driven automation in complex, regulated environments.
“What drew me to FSS is its deep payments expertise, strong product DNA, and the scale at which its platforms power real-world financial ecosystems,” said Anand Krishnamurthi. “I aim to strengthen delivery predictability, execution rigor, and engineering quality, building empowered teams that deliver measurable customer outcomes. FSS has a unique opportunity to create real-time, AI-infused payments infrastructure that is resilient, secure, and globally scalable.”
V. Balasubramanian added, “Anand’s track record in leading multi-geography delivery programs and AI-first operating models makes him the ideal leader for FSS as we accelerate our AI-driven digital payments business. His leadership will help us raise the bar for outcomes globally.”
This appointment is part of FSS’s broader push to build an AI-powered, cloud-native delivery organisation capable of meeting the evolving needs of banks, fintechs, and financial institutions worldwide.
