Glaxosmithkline Consumer Healthcare EBITDA dropped on 16.4% in 2015 while Revenue increased on 9.6%

08-05-2015 • About Glaxosmithkline Consumer Healthcare ($GSKCONS) • By InTwits

Glaxosmithkline Consumer Healthcare reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has highly profitable business model: ROIC is at 36.2%.

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Glaxosmithkline Consumer Healthcare ($GSKCONS) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	26,855	30,794	36,038	39,287	43,076	9.6%
EBITDA	5,052	5,742	6,428	8,841	7,389	-16.4%
Net Income	3,552	4,368	5,031	5,183	5,836	12.6%
Balance Sheet
Cash	10,779	14,620		18,360	22,930	24.9%
Short Term Debt	0	0		0	0
Long Term Debt	0	0		0	0
Cash flow
Capex	978	837		1,686	1,074	-36.3%
Ratios
Revenue growth	-49.6%	14.7%	17.0%	9.0%	9.6%
EBITDA growth	2.2%	13.7%	11.9%	37.5%	-16.4%
EBITDA Margin	18.8%	18.6%	17.8%	22.5%	17.2%	-5.3%
Net Income Margin	13.2%	14.2%	14.0%	13.2%	13.5%	0.4%
CAPEX, % of revenue	3.6%	2.7%		4.3%	2.5%	-1.8%
ROIC	45.0%	44.6%			36.2%	36.2%
ROE	33.8%	34.9%			29.7%	29.7%
Net Debt/EBITDA	-2.1x	-2.5x	0.0x	-2.1x	-3.1x	-1.0x

Revenue and profitability

Glaxosmithkline Consumer Healthcare's Revenue increased on 9.6% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 5.3 pp from 22.5% to 17.2% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments

Glaxosmithkline Consumer Healthcare's CAPEX/Revenue was 2.5% in FY2015. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015.

Return on investment

The company operates at high and attractive ROIC (36.17%) and ROE (29.73%).

Leverage (Debt)

The company has no debt. Cash surged on 24.9% in FY2015.

Appendix 1: Peers in Packaged Foods

Below you can find Glaxosmithkline Consumer Healthcare benchmarking vs. other companies in Packaged Foods industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Krbl ($KRBL)	-2.2%	5.6%	27.6%	39.9%
Sunil Agro Foods ($SUNILAGR)	-34.2%	1.6%	38.3%	29.1%
Milkfood ($MLKFOOD)	-29.8%	-1.1%	9.3%	27.7%
Simran Farms ($SIMRAN)	-69.5%	38.4%	23.8%	27.5%
Venky'S (India) ($VENKYS)	-61.1%	18.0%	46.0%	24.8%
Median (15 companies)	-37.4%	18.0%	14.8%	16.0%
Glaxosmithkline Consumer Healthcare ($GSKCONS)		14.7%	17.0%	9.0%	9.6%

Top companies by EBITDA margin, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Nestle India ($NESTLEIND)	20.5%	22.0%	21.7%	20.9%
Krbl ($KRBL)	14.7%	14.1%	14.2%	15.1%
Vadilal Industries ($VADILALIND)	10.1%	19.8%	11.6%	11.2%
Britannia Industries ($BRITANNIA)	5.2%	5.7%	6.9%	9.2%
Bambino Agro Industries ($BAMBINO)	7.7%	8.0%		8.8%
Median (12 companies)	5.8%	7.2%	7.1%	7.1%
Glaxosmithkline Consumer Healthcare ($GSKCONS)	18.8%	18.6%	17.8%	22.5%	17.2%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Venky'S (India) ($VENKYS)	6.4%	8.9%	6.6%	10.4%
Krbl ($KRBL)	5.8%	4.1%	4.0%	6.1%
Vadilal Industries ($VADILALIND)	20.1%	12.2%	9.4%	5.9%
Adf Foods ($ADFFOODS)	21.8%	1.9%	18.3%	5.8%
Heritage Foods ($HERITGFOOD)	2.8%	2.1%	1.9%	3.7%
Median (9 companies)	3.1%	4.1%	4.0%	3.7%
Glaxosmithkline Consumer Healthcare ($GSKCONS)	3.6%	2.7%		4.3%	2.5%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Britannia Industries ($BRITANNIA)	17.8%	24.6%	33.7%	54.0%
Nestle India ($NESTLEIND)	85.4%	57.7%	47.9%	49.6%
Kse ($KSE)	14.7%	27.7%	14.1%	36.9%
Heritage Foods ($HERITGFOOD)	5.9%	11.7%	29.6%	22.4%
Umang Dairies ($UMANGDAIR)	54.8%	93.5%	55.6%	22.3%
Median (19 companies)	11.3%	12.1%	12.5%	22.3%
Glaxosmithkline Consumer Healthcare ($GSKCONS)	45.0%	44.6%			36.2%

Top companies by Net Debt / EBITDA


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Venky'S (India) ($VENKYS)	0.9x	2.6x	2.8x	6.7x
Vadilal Industries ($VADILALIND)	5.8x	2.6x	4.5x	3.9x
Bambino Agro Industries ($BAMBINO)	3.1x	3.2x		3.2x
Krbl ($KRBL)	3.7x	4.1x	2.9x	3.0x
Umang Dairies ($UMANGDAIR)	1.8x	0.6x	0.5x	1.7x
Median (12 companies)	2.3x	1.9x	1.3x	1.1x
Glaxosmithkline Consumer Healthcare ($GSKCONS)	-2.1x	-2.5x	0.0x	-2.1x	-3.1x

Glaxosmithkline Consumer Healthcare stock price chart

Glaxosmithkline Consumer Healthcare financials

mln.	FY2010	FY2011	FY2012

Revenue	53,326	26,855	30,794
EBITDA	4,941	5,052	5,742
Net income	2,999	3,552	4,368
CAPEX	1,143	978.0	837.4
Debt	0.000	0.000	0.000
Cash	9,749	10,779	14,620

About Glaxosmithkline Consumer Healthcare

GlaxoSmithKline Consumer Healthcare Limited operates in the health food drinks industry in India. It manufactures and markets health food drinks, nutritional supplements, biscuits, and choco-malt drinks under the Horlicks, Boost, Maltova, and Viva brand names. The company also offers over-the-counter medicine, including Crocin, a pain and body ache relieving drug; Crocin Pain Relief, a pain relief medicine; Crocin Cold and Flu, which provides relief from cold; and Crocin paediatric medicines for infants, toddlers, and older kids up to 12 years. In addition, it provides Eno, an antacid for acidity, gastric discomfort, and heat burn; and Iodex for head, neck, back joint, and muscular pains, as well as Iodex creams and gels; and oral care products under the Sensodyne brand name. The company exports its products to Pakistan, Myanmar, Sri Lanka, Bangladesh, the Middle East, Nepal, Kenya, and Malaysia. GlaxoSmithKline Consumer Healthcare Limited was incorporated in 1958 and is headquartered in Gurgaon, India.