Gillette’s Nicked Cash Flow
By Steven Mallas
July 29, 2004
Gillette reported second-quarter earnings this summer morning that were rather cutting-edge. Net revenues came in at $2.44 billion versus $2.25 billion in the previous year’s quarter, a jump of 8%. Net profits were $426 million against $338 million, representative of 26% appreciation. On a diluted basis, earnings per share came in at $0.42 versus $0.33.
Expenditures for researching and marketing new products can be expensive, but a company such as Gillette needs to make sure it is constantly innovating. The new M3Power shaving device is an example; over time, some of these new franchise products will hopefully contribute to higher revenues and a better free cash flow situation.