Glaxosmithkline Consumer Healthcare Net Income jumped on 17.7% and EBITDA Margin increased on 2.2 pp from 17.2% to 19.4%
17-05-2016 • About Glaxosmithkline Consumer Healthcare (
$GSKCONS) • By InTwits
Glaxosmithkline Consumer Healthcare reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has highly profitable business model: ROIC is 35.7%.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Glaxosmithkline Consumer Healthcare's Revenue showed almost no change in FY2016. Revenue decline was accelerating on average at -3.7 pp per annum in the last 5 years. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.2 pp from 17.2% to 19.4% in FY2016.
Net Income margin increased on 2.4 pp from 13.5% to 15.9% in FY2016. During the last 5 years Net Income margin bottomed in FY2014 at 13.2% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 Glaxosmithkline Consumer Healthcare had CAPEX/Revenue of 1.4%. Glaxosmithkline Consumer Healthcare's CAPEX/Revenue increased slightly on 1.4 pp from in FY2013 to 1.4% in FY2016. For the last three years the average CAPEX/Revenue was 2.7%.
Return on investment
The company operates at high and attractive ROIC (35.7%) and ROE (30.1%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 18.1%.
Management team
The company's CEO is Manoj Kumar. Manoj Kumar has 5 years tenure with the company. The company's CFO Vivek Anand has spent 5 years with the company.
Financial and operational results
Glaxosmithkline Consumer Healthcare ($GSKCONS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 30,794 | 36,038 | 39,287 | 43,076 | 43,087 | 0.0% |
| SG&A | | | | | 6,941 | |
| EBITDA | 5,742 | 6,428 | 8,841 | 7,389 | 8,354 | 13.1% |
| Net Income | 4,368 | 5,031 | 5,183 | 5,836 | 6,869 | 17.7% |
Balance Sheet
|
|---|
| Cash | 14,620 | | 18,360 | 22,930 | 27,090 | 18.1% |
| Short Term Debt | 0 | | 0 | 0 | 0 | |
| Long Term Debt | 0 | | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 837 | | 1,686 | 1,074 | 598 | -44.3% |
Ratios
|
|---|
| Revenue growth | 14.7% | 17.0% | 9.0% | 9.6% | 0.0% | |
| EBITDA growth | 13.7% | 11.9% | 37.5% | -16.4% | 13.1% | |
|
|---|
| EBITDA Margin | 18.6% | 17.8% | 22.5% | 17.2% | 19.4% | 2.2% |
| SG&A, % of revenue | | | | | 16.1% | |
| Net Income Margin | 14.2% | 14.0% | 13.2% | 13.5% | 15.9% | 2.4% |
| CAPEX, % of revenue | 2.7% | | 4.3% | 2.5% | 1.4% | -1.1% |
|
|---|
| ROIC | 44.6% | | | 36.2% | 35.7% | -0.4% |
| ROE | 34.9% | | | 29.7% | 30.1% | 0.4% |
| Net Debt/EBITDA | -2.5x | 0.0x | -2.1x | -3.1x | -3.2x | -0.1x |
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Simran Farms ($SIMRAN) | 38.4% | 23.8% | 27.5% | 23.4% | - |
| Heritage Foods ($HERITGFOOD) | 27.1% | 15.0% | 7.5% | 20.4% | - |
| Rcl Foods ($RCLFOODS) | -56.8% | -34.2% | 18.2% | 17.8% | - |
| Umang Dairies ($UMANGDAIR) | - | 15.7% | 24.5% | 16.1% | -24.8% |
| Britannia Industries ($BRITANNIA) | 19.0% | 12.4% | 11.3% | 13.8% | - |
| |
|---|
| Median (17 companies) | 14.4% | 14.9% | 15.8% | 4.5% | -11.6% |
|---|
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | - | 17.0% | 9.0% | 9.6% | 0.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zydus Wellness ($ZYDUSWELL) | 23.1% | 25.4% | 22.6% | 23.8% | 21.3% |
| Nestle India ($NESTLEIND) | 22.0% | 21.7% | 20.9% | 19.7% | - |
| Sampre Nutritions ($SAMPRE) | - | - | - | 16.8% | - |
| Krbl ($KRBL) | 14.1% | 14.2% | 15.1% | 15.4% | - |
| Adf Foods ($ADFFOODS) | 13.5% | 11.2% | 8.6% | 14.5% | - |
| |
|---|
| Median (19 companies) | 7.6% | 7.3% | 8.7% | 6.7% | 21.3% |
|---|
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 18.6% | 17.8% | 22.5% | 17.2% | 19.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Venky'S (India) ($VENKYS) | 8.9% | 6.6% | 10.4% | 7.7% | - |
| Krbl ($KRBL) | 4.1% | 4.0% | 6.1% | 7.3% | - |
| Umang Dairies ($UMANGDAIR) | 2.0% | 4.4% | 2.7% | 3.2% | - |
| Heritage Foods ($HERITGFOOD) | 2.1% | 1.9% | 3.7% | 2.5% | - |
| Vadilal Industries ($VADILALIND) | 12.2% | 9.4% | 5.9% | 2.2% | - |
| |
|---|
| Median (9 companies) | 3.9% | 3.9% | 3.7% | 2.2% | 0.9% |
|---|
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 2.7% | - | 4.3% | 2.5% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kse ($KSE) | 27.7% | 14.1% | 36.9% | 69.0% | - |
| Britannia Industries ($BRITANNIA) | 24.6% | 33.7% | 54.0% | 59.4% | - |
| Nestle India ($NESTLEIND) | 57.7% | 47.9% | 49.6% | 40.2% | - |
| Umang Dairies ($UMANGDAIR) | 93.5% | 55.6% | 22.3% | 28.4% | - |
| Zydus Wellness ($ZYDUSWELL) | - | 41.0% | 28.8% | 24.5% | 18.6% |
| |
|---|
| Median (21 companies) | 12.1% | 14.1% | 22.3% | 21.3% | 18.6% |
|---|
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 44.6% | - | - | 36.2% | 35.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vadilal Industries ($VADILALIND) | 2.6x | 4.5x | 3.9x | 4.0x | - |
| Venky'S (India) ($VENKYS) | 2.6x | 2.8x | 6.7x | 3.9x | - |
| Bambino Agro Industries ($BAMBINO) | 3.2x | - | 3.2x | 2.9x | - |
| Krbl ($KRBL) | 4.1x | 2.9x | 3.0x | 2.7x | - |
| Heritage Foods ($HERITGFOOD) | 2.2x | 0.9x | 1.0x | 1.4x | - |
| |
|---|
| Median (17 companies) | 1.8x | 0.9x | 1.1x | 0.0x | -3.3x |
|---|
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | -2.5x | 0.0x | -2.1x | -3.1x | -3.2x |
