Shares of Gillette India Ltd. dropped by 3% after reaching a day’s high of Rs 8,693.30 on 25th September. This decline followed the company’s announcement yesterday that Procter & Gamble Bangladesh Private Ltd. has terminated their distribution agreement, effective 31st December 2024.

The firm announced that it has received a letter from its distributor, Procter & Gamble Bangladesh Private Limited, informing them of the termination of their distribution agreement. The termination will be effective on 31st December 2024, as stated in the company’s stock exchange filing.

This termination is expected to lead to a proportional decline in Gillette India’s net sales. For the financial year 2023-24, sales under the agreement contributed around 2% of the company’s total net sales.

Gillette India stated that the termination of the distribution agreement would result in a proportional decline in net sales, as sales under this agreement contributed 2% of the company’s total net sales for the financial year 2023-24.

However, they confirmed that the termination will not significantly affect its overall profits, stating that there will be “no material impact on the company’s profits” due to this change.

The company posted a 26.4% increase in profit after tax (PAT) to Rs 115.97 crore for the June quarter, compared to Rs 91.75 crore in the same period last year. Revenue from operations rose 4.17% to Rs 645.33 crore, driven by a strong portfolio and retail execution.

Total expenses fell 1.17% to Rs 494.68 crore. Revenue from the grooming segment grew 7% to Rs 519.68 crore, while oral care declined 6.28% to Rs 125.65 crore. Total income, including other income, rose 4.11% to Rs 649.91 crore.

At 10:24 AM, the shares of Gillette India were trading 2.80% lower at Rs 8,526.30 on NSE.

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