Rs 50/Share Dividend: Midcap FMCG Stock To Trade Ex-Dividend Next Week; Do You Own?

FMCG major stock, Gillette India will be in limelight next week as the shares will turn ex-dividend for a payout of 500% final dividend. Including this, Gillette is set to pay a hefty dividend of 850% for the financial year ending June 30, 2023. In six months, Gillette shares gained nearly 44% on BSE.

In the trading week that ended on November 17th, Gillette shares ended in red with nearly 0.6% downside on BSE. On Friday, the stock dipped by 1.42% to end at Rs 6,336.10 apiece with m-cap of Rs 20,646.32 apiece on BSE.

As per the regulatory filing, Gillette has declared a final dividend of Rs 50 per equity share of face value of Rs 10 each for the company's Financial Year 2022-23. The company fixed November 21 as the record date for determining eligible shareholders for the benefit of the dividend.

Earlier, the company paid a total interim dividend of Rs 35 per share.

The aggregate dividend for the Financial Year ended June 30, 2023, including the interim dividend of Rs 35 per equity share and the final dividend of Rs 50 per
equity share amounts to Rs 85 per equity share. In percentage terms, the payout will be 850%.

In the September 2023 quarter, Gillette India delivered a balanced growth during the quarter with sales of Rs 668 crore, up 8% vs year ago driven by superior retail execution, strong brand fundamentals and its integrated growth strategy. The Company reported Profit After Tax (PAT) at Rs 93 crores, up 7% vs year ago led by premiumization, deliberate productivity interventions, partially offset by a one-time expense. Excluding this one-time impact, operational Profit After Tax (PAT) was up 14% versus year ago.

Gillette India was incorporated in India as Indian Shaving
Products Limited in 1984. P&G acquired the Company in the year 2005. The Company is engaged in manufacturing and selling of branded packaged fast moving consumer goods in the grooming and oral care businesses. It is one of the well-known FMCG companies that has in its portfolio Gillette and Oral-B, which are world's leading brands.

The Company has carved a reputation for delivering superior products to meet the needs of consumers. The Company is committed to making every day in the lives of Indian consumers better through superior value propositions.

In its annual report of 2022-23, L.V. Vaidyanathan, Managing Director Of Gillette India said, "the outlook for the FMCG sector remains positive. The Company will continue to focus on its growth strategies towards delivering balanced and sustained growth in a competitive macroeconomic environment."

Gillette follows a financial year that ends on June months. Its new financial year begins from July months. Hence, after the first quarter of 2023-24, on October 31, Vaidyanathan said, "We have started the fiscal on a balanced note, with an encouraging top-line and bottom-line growth. This sequential growth comes behind strong execution of our integrated strategies of a focused product portfolio, superiority, productivity, constructive disruption, and an agile and accountable organization structure. We remain committed to these strategies in the near-term, to continue driving a balanced top and bottom-line growthin a competitive macro-economic
environment."

Gillette is also among high-paying FMCG stocks with a track record of 30 dividends payout since June 2001, as per Trendlyne data.