Colgate-Palmolive (India) EBITDA jumped on 14.3% and Revenue increased on 4.5%
24-05-2016 • About Colgate-Palmolive (India) (
$COLPAL) • By InTwits
Colgate-Palmolive (India) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Colgate-Palmolive (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's in pair with industry average of 5.7%
- CAPEX is quite volatile: ₹2,727m in FY2016, ₹3,000m in FY2015, ₹3,236m in FY2014, ₹1,547m in FY2013, ₹1,022m in FY2012
- The company has highly profitable business model: ROIC is 85.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 4.5%. Revenue decline was accelerating on average at -3.3 pp per annum in the last 5 years. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.9 pp from 20.7% to 22.6% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2014 at 18.6% and was growing since that time.
Net Income margin showed almost no change in FY2016. Net Income margin declined at -0.71 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 6.6% in FY2016. The company's CAPEX/Revenue increased slightly on 1.7 pp from 4.9% in FY2013 to 6.6% in FY2016. Average CAPEX/Revenue for the last three years was 7.7%. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2014 at 9.0% and was declining since that time.
Return on investment
The company operates at high and attractive ROIC (85.6%) and ROE (64.4%). ROIC dropped on 14.3 pp from 99.9% to 85.6% in FY2016. ROE dropped on 17.2 pp from 81.6% to 64.4% in FY2016. ROIC stuck to a declining trend at -9.2 pp per annum in the last 5 years. ROE declined at -11.5 pp per annum in FY2012-FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 45.7%.
Financial and operational results
Colgate-Palmolive (India) ($COLPAL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 26,932 | 31,638 | 35,788 | 39,819 | 41,623 | 4.5% |
| SG&A | | | | | 4,179 | |
| EBITDA | 5,837 | 6,633 | 6,672 | 8,229 | 9,408 | 14.3% |
| Net Income | 4,465 | 4,968 | 5,399 | 5,590 | 5,765 | 3.1% |
Balance Sheet
|
|---|
| Cash | 1,557 | 239 | 1,509 | 1,324 | 1,929 | 45.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 1,022 | 1,547 | 3,236 | 3,000 | 2,727 | -9.1% |
Ratios
|
|---|
| Revenue growth | 17.8% | 17.5% | 13.1% | 11.3% | 4.5% | |
| EBITDA growth | 13.1% | 13.6% | 0.6% | 23.3% | 14.3% | |
|
|---|
| EBITDA Margin | 21.7% | 21.0% | 18.6% | 20.7% | 22.6% | 1.9% |
| SG&A, % of revenue | | | | | 10.0% | |
| Net Income Margin | 16.6% | 15.7% | 15.1% | 14.0% | 13.9% | -0.2% |
| CAPEX, % of revenue | 3.8% | 4.9% | 9.0% | 7.5% | 6.6% | -1.0% |
|
|---|
| ROIC | 121.4% | 120.4% | 104.4% | 99.9% | 85.6% | -14.3% |
| ROE | 109.0% | 107.4% | 99.1% | 81.6% | 64.4% | -17.2% |
| Net Debt/EBITDA | -0.3x | -0.0x | -0.2x | -0.2x | -0.2x | -0.0x |
Peers in Personal Products
Below we provide Colgate-Palmolive (India) 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bajaj Corp ($BAJAJCORP) | - | 28.2% | 10.7% | 22.9% | 6.2% |
| Marico ($MARICO) | - | 15.5% | 2.0% | 22.3% | 7.0% |
| Emami ($EMAMILTD) | - | 16.9% | 7.2% | 21.8% | 18.3% |
| Bliss Gvs Pharma ($BLISSGVS) | - | 48.5% | -13.1% | 17.0% | - |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 29.4% | 29.9% | 21.5% | 13.9% | - |
| |
|---|
| Median (8 companies) | 29.4% | 22.5% | 9.6% | 15.4% | 7.5% |
|---|
| Colgate-Palmolive (India) ($COLPAL) | - | 17.5% | 13.1% | 11.3% | 4.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bajaj Corp ($BAJAJCORP) | 24.6% | 28.4% | 27.7% | 29.0% | 31.2% |
| Cupid ($CUPID) | - | - | - | 28.9% | - |
| Bliss Gvs Pharma ($BLISSGVS) | 27.2% | 28.1% | 20.9% | 25.7% | - |
| Emami ($EMAMILTD) | 20.9% | 20.5% | 24.3% | 25.0% | 26.1% |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 16.3% | 15.4% | 20.7% | 21.3% | - |
| |
|---|
| Median (10 companies) | 17.2% | 16.0% | 18.7% | 19.3% | 18.2% |
|---|
| Colgate-Palmolive (India) ($COLPAL) | 21.7% | 21.0% | 18.6% | 20.7% | 22.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | 8.7% | 5.0% | 16.7% | 7.0% | - |
| Emami ($EMAMILTD) | 8.0% | 5.0% | 3.6% | 5.0% | 69.3% |
| Dabur India ($DABUR) | 4.4% | 3.9% | 3.0% | 3.4% | 2.6% |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 4.2% | 2.2% | 7.2% | 3.4% | - |
| Cupid ($CUPID) | - | - | - | 3.0% | - |
| |
|---|
| Median (9 companies) | 4.2% | 4.0% | 3.3% | 3.0% | 2.4% |
|---|
| Colgate-Palmolive (India) ($COLPAL) | 3.8% | 4.9% | 9.0% | 7.5% | 6.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hindustan Unilever ($HINDUNILVR) | 99.9% | 114.4% | 133.0% | 133.9% | 136.2% |
| Bajaj Corp ($BAJAJCORP) | - | 36.9% | 36.2% | 46.5% | 54.8% |
| Cupid ($CUPID) | 6.0% | 8.5% | 3.1% | 35.1% | 46.1% |
| Marico ($MARICO) | 23.2% | 22.6% | 26.9% | 36.1% | 40.6% |
| Dabur India ($DABUR) | 29.4% | 28.7% | 30.8% | 31.3% | 29.5% |
| |
|---|
| Median (8 companies) | 25.6% | 29.5% | 28.9% | 36.1% | 40.6% |
|---|
| Colgate-Palmolive (India) ($COLPAL) | 121.4% | 120.4% | 104.4% | 99.9% | 85.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Godrej Consumer Products ($GODREJCP) | 1.6x | 1.7x | 1.5x | 1.7x | 1.4x |
| Emami ($EMAMILTD) | 0.5x | -0.5x | -0.5x | -0.6x | 0.8x |
| Dabur India ($DABUR) | 0.8x | 1.2x | 0.3x | 0.5x | 0.4x |
| Marico ($MARICO) | 1.5x | 1.3x | 0.9x | 0.3x | 0.0x |
| Hindustan Unilever ($HINDUNILVR) | -0.3x | -0.1x | -0.2x | -0.2x | -0.1x |
| |
|---|
| Median (7 companies) | 0.6x | 0.5x | 0.3x | -0.1x | 0.0x |
|---|
| Colgate-Palmolive (India) ($COLPAL) | -0.3x | -0.0x | -0.2x | -0.2x | -0.2x |
