Mumbai: Under pressure from demonetisation, Procter and Gamble Hygiene and Health Care posted a 1.19% decrease in sales in the December quarter.

The world’s largest consumer products company, however, saw a 2.8% increase in profit after tax year-on-year (y-o-y), increasing to Rs150.62 crore.

The company attributed reduced sales to “unforeseen liquidity crunch in the market that impacted trade inventories and consumer offtake" in a statement. The company also reduced its advertising and promotion spends by 3.8% y-o-y.

P&G noted that the market has begun its recovery and that they will continue to focus on “balanced growth behind brand fundamentals, strength of product portfolio, and improved in-store execution", the company said in a statement.

P&G Healthcare makes a majority of its total revenue from feminine hygiene and healthcare products under the Whisper brand that is the leader in its category, according to the company’s annual report.

Procter and Gamble Hygiene and Health Care shares opened 1.11% higher on Wednesday at Rs7,039.40. The shares closed up 0.62% at Rs7,005.90 while the benchmark index Sensex, closed down 0.16%.