Procter & Gamble Hygiene and Health Care (500459) Investor Update summary

Financial performance and growth

• Achieved 7% sales growth to INR 4,192 crore and 19% operational profit growth, with structural margins improving by 400 basis points due to productivity and premiumization efforts.

• Consistent high single-digit sales and profit growth over 10 years, with return on equity doubling and share price tripling.

• Net sales and PAT have more than doubled over the past decade, with 7% and 8% CAGR respectively.

• FemCare contributes 70% and healthcare 30% of revenue, with balanced growth across both segments.

• Maintained share leadership despite macro and competitive challenges.

Strategic initiatives and innovation

• Integrated Growth Strategy focuses on product superiority, productivity, constructive disruption, and an agile organization.

• Innovations include Whisper Ultra XL for heavy flow, Vicks Cough Drops Double Power, Vicks VapoRub Steam Pods, and Vicks Roll-On.

• Lean innovation and digitization initiatives, including AI-based quality control and supply chain optimization, are driving efficiency.

• Achieved INR 113 crores in productivity savings for FY 23/24, integrating productivity into strategy to fuel investments.

• Diverse portfolio includes leading brands in feminine care, health care, baby, grooming, and home care.

Market and category trends

• FemCare market has grown 100x in 30 years, now at INR 3,400 crore, with double-digit growth expected over the next three years.

• Urban penetration is about 60%, rural below 40%, with significant headroom for growth; unorganized and D2C players represent less than 10% of the market.

• FMCG industry volume growth at 4%, with green shoots in rural demand due to good monsoons and softening inflation.

• India’s macroeconomic indicators remain strong, with GDP growth returning to record highs and tax collections and forex reserves at all-time highs.

• Positive consumption trends supported by lower inflation, strong monsoons, and rural consumption recovery.