One of India’s fastest growing FMCG, the healthcare and hygiene company has posted a very good performance for the year ended 30th June 2008.
Net sales of the company rose 19%at Rs.645.02 crore and despite a 17% rise in operating expenses, its EBITDA was up 25% at Rs.192.70 crore. The business of the company was driven mainly by 16% growth in the healthcare division, driven by a 25% rise in Vicks Coughdrop and Vicks Vaporub. The feminine hygiene division showed a 215 jump in sales.
The company’s spend on advertising rose from 59.96 crore to Rs.68.84 crore. PBT was up 24% at Rs.180.56 crore and PAT rose 46% at Rs.131.41 crore. NPM was up from 16.62% to 20.37%. On an equity of Rs.32.46 crore, it posted an EPS of Rs.40.50.
Rising inflation had its effect in the form of a poor offtake in the company’s sales in fourth quarter ended 30th June 2008. YoY, the performance has been good. It sales grew by 20%. The feminine hygiene products showed a 20% jump in sales and this was led by a whopping 55% jump in the value growth in the mid-tier market segment. The company’s spend on advertising, QoQ, has gone up from 17.94 crore to Rs.19.95 crore.
But sequentially, one can see that there has been pressure. Net sales grew only marginally by less than one percent and PAT was down 15%. This could be partly blamed on inflation and partly on the cyclical trend of the company. Historically, one can trace that April-June quarter has been its weakest while its best is Oct-Dec quarter.
P&G is a much fancied FMCG stock on the bourses and it is currently quoted at Rs.766, stay invested.
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