Procter & Gamble Hygiene & Health Care EBITDA surged on 17.3% in 2015 and Revenue surged on 13.9%
28-08-2015 • About Procter & Gamble Hygiene & Health Care (
$PGHH) • By InTwits
Procter & Gamble Hygiene & Health Care reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Procter & Gamble Hygiene & Health Care has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 3.9%.
- CAPEX is quite volatile: 784 in FY2015, 1,471 in FY2014, 378 in FY2013, 545 in FY2012, 554 in FY2011
- The company has highly profitable business model: ROIC is at 40.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Procter & Gamble Hygiene & Health Care ($PGHH) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,029 | 12,974 | 16,849 | 20,472 | 23,323 | 13.9% |
| EBITDA | 1,660 | 2,111 | 2,589 | 4,241 | 4,974 | 17.3% |
| Net Income | 1,509 | 1,813 | 2,032 | 3,020 | 3,461 | 14.6% |
Balance Sheet
|
|---|
| Cash | 1,255 | 1,762 | 1,639 | 2,677 | 6,171 | 130.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 554 | 545 | 378 | 1,471 | 784 | -46.7% |
Ratios
|
|---|
| Revenue growth | -65.3% | 29.4% | 29.9% | 21.5% | 13.9% | |
| EBITDA growth | -28.8% | 27.2% | 22.6% | 63.8% | 17.3% | |
| EBITDA Margin | 16.6% | 16.3% | 15.4% | 20.7% | 21.3% | 0.6% |
| Net Income Margin | 15.0% | 14.0% | 12.1% | 14.8% | 14.8% | 0.1% |
| CAPEX, % of revenue | 5.5% | 4.2% | 2.2% | 7.2% | 3.4% | -3.8% |
| ROIC | 25.2% | 28.1% | 30.3% | 43.2% | 40.1% | -3.2% |
| ROE | 26.6% | 27.9% | 27.1% | 33.4% | 31.0% | -2.4% |
| Net Debt/EBITDA | -0.8x | -0.8x | -0.6x | -0.6x | -1.2x | -0.6x |
Revenue and profitability
The company's Revenue surged on 13.9% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.61 pp from 20.7% to 21.3% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 3.4%. CAPEX/Revenue decreased slightly on 0.84 pp from 4.2% in FY2012 to 3.4% in FY2015. It's average CAPEX/Revenue for the last three years was 4.3%.
Return on investment
The company operates at high and attractive ROIC (40.05%) and ROE (31.02%). ROIC decreased on 3.2 pp from 43.2% to 40.1% in FY2015. ROE decreased on 2.4 pp from 33.4% to 31.0% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 131% in FY2015.
Appendix 1: Peers in Personal Products
Below we provide Procter & Gamble Hygiene & Health Care benchmarking against other companies in Personal Products industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Marico ($MARICO) | | 26.9% | 15.5% | 2.0% | 22.3% |
| Emami ($EMAMILTD) | | 16.6% | 16.9% | 7.2% | 21.8% |
| Bliss Gvs Pharma ($BLISSGVS) | | | 48.5% | -13.1% | 17.0% |
| Colgate-Palmolive (India) ($COLPAL) | | 17.8% | 17.5% | 13.1% | 11.3% |
| Dabur India ($DABUR) | | 29.3% | 16.3% | 15.0% | 10.3% |
| |
|---|
| Median (7 companies) | | 22.4% | 16.9% | 8.4% | 11.3% |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | | 29.4% | 29.9% | 21.5% | 13.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cupid ($CUPID) | | | | | 28.9% |
| Bliss Gvs Pharma ($BLISSGVS) | | 27.2% | 28.1% | 20.9% | 25.7% |
| Emami ($EMAMILTD) | 21.8% | 20.9% | 20.5% | 24.3% | 25.0% |
| Colgate-Palmolive (India) ($COLPAL) | 22.6% | 21.7% | 21.0% | 18.6% | 20.7% |
| Hindustan Unilever ($HINDUNILVR) | 14.0% | 15.2% | 16.0% | 16.6% | 17.4% |
| |
|---|
| Median (9 companies) | 18.2% | 18.1% | 16.0% | 16.6% | 17.4% |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | 16.6% | 16.3% | 15.4% | 20.7% | 21.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Colgate-Palmolive (India) ($COLPAL) | 1.8% | 3.8% | 4.9% | 9.0% | 7.5% |
| Bliss Gvs Pharma ($BLISSGVS) | | 8.7% | 5.0% | 16.7% | 7.0% |
| 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 ($CUPID) | | | | | 3.0% |
| |
|---|
| Median (8 companies) | 4.9% | 3.8% | 4.9% | 3.0% | 3.2% |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | 5.5% | 4.2% | 2.2% | 7.2% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hindustan Unilever ($HINDUNILVR) | 96.0% | 99.9% | 114.4% | 133.0% | 133.9% |
| Colgate-Palmolive (India) ($COLPAL) | 134.8% | 121.4% | 120.4% | 104.4% | 99.9% |
| 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 ($CUPID) | 5.8% | 6.0% | 8.5% | 3.1% | 35.1% |
| |
|---|
| Median (9 companies) | 27.1% | 26.3% | 28.7% | 26.9% | 35.6% |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | 25.2% | 28.1% | 30.3% | 43.2% | 40.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Godrej Consumer Products ($GODREJCP) | 2.7x | 1.6x | 1.7x | 1.5x | 1.7x |
| Bliss Gvs Pharma ($BLISSGVS) | | 0.0x | 1.1x | 1.9x | 1.4x |
| Dabur India ($DABUR) | 1.0x | 0.8x | 1.2x | 0.3x | 0.5x |
| Marico ($MARICO) | 1.4x | 1.5x | 1.3x | 0.9x | 0.3x |
| Cupid ($CUPID) | 2.2x | 1.7x | 0.5x | 1.4x | -0.1x |
| |
|---|
| Median (8 companies) | 0.9x | 0.8x | 0.8x | 0.6x | 0.1x |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | -0.8x | -0.8x | -0.6x | -0.6x | -1.2x |
