That covid-19 would eat into revenues of companies for the March quarter was a foregone conclusion. Which is why Procter & Gamble Hygiene and Health Care Ltd’s (P&G Hygiene) 6% year-on-year decline in revenue last quarter doesn’t pinch that much.
What is heartening, however, is its earnings before interest, taxes, depreciation and amortization (Ebitda) margin has improved by 56 basis points over the same period last year to 21.1%.
One basis point is one-hundredth of a percentage point. The March quarter is the third quarter for the company, as its financial year ends in June.
A sharp decline in raw material costs as a percentage of revenue boosted gross margin, which also eventually percolated to the Ebitda margin.