Colgate-Palmolive (India) reports 23.3% EBITDA growth and 2.0 pp EBITDA Margin growth from 18.6% to 20.7%
19-05-2015 • About Colgate-Palmolive (India) (
$COLPAL) • By InTwits
Colgate-Palmolive (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Colgate-Palmolive (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's in pair with industry average of 5.4%.
- CAPEX is quite volatile: 3,000 in FY2015, 3,236 in FY2014, 1,547 in FY2013, 1,022 in FY2012, 411 in FY2011
- The company has highly profitable business model: ROIC is at 99.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Colgate-Palmolive (India) ($COLPAL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 22,861 | 26,932 | 31,638 | 35,788 | 39,819 | 11.3% |
| EBITDA | 5,161 | 5,837 | 6,633 | 6,672 | 8,229 | 23.3% |
| Net Income | 4,026 | 4,465 | 4,968 | 5,399 | 5,590 | 3.5% |
Balance Sheet
|
|---|
| Cash | 1,611 | 1,557 | 239 | 1,509 | 1,324 | -12.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 1 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 411 | 1,022 | 1,547 | 3,236 | 3,000 | -7.3% |
Ratios
|
|---|
| Revenue growth | -55.8% | 17.8% | 17.5% | 13.1% | 11.3% | |
| EBITDA growth | 4.7% | 13.1% | 13.6% | 0.6% | 23.3% | |
| EBITDA Margin | 22.6% | 21.7% | 21.0% | 18.6% | 20.7% | 2.0% |
| Net Income Margin | 17.6% | 16.6% | 15.7% | 15.1% | 14.0% | -1.0% |
| CAPEX, % of revenue | 1.8% | 3.8% | 4.9% | 9.0% | 7.5% | -1.5% |
| ROIC | 134.8% | 121.4% | 120.4% | 104.4% | 99.9% | -4.5% |
| ROE | 112.7% | 109.0% | 107.4% | 99.1% | 81.6% | -17.5% |
| Net Debt/EBITDA | -0.3x | -0.3x | -0.0x | -0.2x | -0.2x | 0.1x |
Revenue and profitability
The company's Revenue surged on 11.3% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.0 pp from 18.6% to 20.7% in FY2015.
Net Income marign decreased slightly on 1.0 pp from 15.1% to 14.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.5% in FY2015. CAPEX/Revenue increased on 3.7 pp from 3.8% in FY2012 to 7.5% in FY2015. Average CAPEX/Revenue for the last three years was 7.2%.
Return on investment
The company operates at high and attractive ROIC (99.88%) and ROE (81.59%). ROIC decreased on 4.5 pp from 104% to 99.9% in FY2015. ROE dropped on 17.5 pp from 99.1% to 81.6% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 12.3% in FY2015.
Appendix 1: Peers in Personal Products
Below you can find Colgate-Palmolive (India) benchmarking vs. other companies in Personal Products 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 |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | -65.3% | 29.4% | 29.9% | 21.5% | |
| Godrej Consumer Products ($GODREJCP) | | 32.0% | 31.7% | 18.6% | 8.7% |
| Dabur India ($DABUR) | | 29.3% | 16.3% | 15.0% | 10.3% |
| Hindustan Unilever ($HINDUNILVR) | | 17.0% | 14.5% | 8.4% | 9.3% |
| Emami ($EMAMILTD) | | 16.6% | 16.9% | 7.2% | 21.8% |
| |
|---|
| Median (7 companies) | -65.3% | 28.1% | 16.9% | 8.4% | 10.3% |
|---|
| Colgate-Palmolive (India) ($COLPAL) | | 17.8% | 17.5% | 13.1% | 11.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cupid ($CUPID) | | | | | 28.9% |
| Emami ($EMAMILTD) | 21.8% | 20.9% | 20.5% | 24.3% | 25.0% |
| Hindustan Unilever ($HINDUNILVR) | 14.0% | 15.2% | 16.0% | 16.6% | 17.4% |
| Dabur India ($DABUR) | 18.7% | 16.2% | 16.0% | 16.3% | 16.8% |
| Godrej Consumer Products ($GODREJCP) | 17.8% | 18.1% | 15.9% | 15.5% | 16.6% |
| |
|---|
| Median (7 companies) | 17.2% | 16.3% | 16.0% | 16.6% | 16.8% |
|---|
| Colgate-Palmolive (India) ($COLPAL) | 22.6% | 21.7% | 21.0% | 18.6% | 20.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emami ($EMAMILTD) | 4.0% | 8.0% | 5.0% | 3.6% | 5.0% |
| Dabur India ($DABUR) | 22.7% | 4.4% | 3.9% | 3.0% | 3.4% |
| Cupid ($CUPID) | | | | | 3.0% |
| Godrej Consumer Products ($GODREJCP) | 37.8% | 3.2% | 4.1% | 1.8% | 2.6% |
| Hindustan Unilever ($HINDUNILVR) | 1.7% | 1.2% | 1.7% | 2.1% | 1.9% |
| |
|---|
| Median (6 companies) | 5.7% | 4.2% | 4.1% | 3.0% | 2.8% |
|---|
| Colgate-Palmolive (India) ($COLPAL) | 1.8% | 3.8% | 4.9% | 9.0% | 7.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hindustan Unilever ($HINDUNILVR) | 96.0% | 99.9% | 114.4% | 133.0% | 133.9% |
| Emami ($EMAMILTD) | 28.2% | 31.5% | 36.7% | 43.3% | 45.4% |
| Marico ($MARICO) | 25.9% | 23.2% | 22.6% | 26.9% | 36.1% |
| Cupid ($CUPID) | 5.8% | 6.0% | 8.5% | 3.1% | 35.1% |
| Dabur India ($DABUR) | 36.5% | 29.4% | 28.7% | 30.8% | 31.3% |
| |
|---|
| Median (7 companies) | 25.7% | 25.6% | 28.7% | 26.9% | 35.6% |
|---|
| Colgate-Palmolive (India) ($COLPAL) | 134.8% | 121.4% | 120.4% | 104.4% | 99.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | | 0.0x | 1.1x | 1.9x | |
| Godrej Consumer Products ($GODREJCP) | 2.7x | 1.6x | 1.7x | 1.5x | 1.7x |
| Cupid ($CUPID) | 2.2x | 1.7x | 0.5x | 1.4x | -0.1x |
| Marico ($MARICO) | 1.4x | 1.5x | 1.3x | 0.9x | 0.3x |
| Dabur India ($DABUR) | 1.0x | 0.8x | 1.2x | 0.3x | 0.5x |
| |
|---|
| Median (8 companies) | 0.9x | 0.8x | 0.8x | 0.6x | 0.1x |
|---|
| Colgate-Palmolive (India) ($COLPAL) | -0.3x | -0.3x | -0.0x | -0.2x | -0.2x |
