Procter & Gamble Hygiene & Health Care Net Income jumped on 22.3% and Revenue increased on 6.4%
26-08-2016 • About Procter & Gamble Hygiene & Health Care (
$PGHH) • By InTwits
Procter & Gamble Hygiene & Health Care reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Procter & Gamble Hygiene & Health Care is a growth stock: FY2016 revenue growth was 6.4%, 5 year revenue CAGR was 19.9% at FY2016 ROIC 40.7%
- EBITDA Margin is expanding: 24.5% in FY2016 vs. 21.3% in FY2015 vs. 16.3% in FY2012
- Procter & Gamble Hygiene & Health Care has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 3.3%.
- CAPEX is quite volatile: ₹527m in FY2016, ₹784m in FY2015, ₹1,471m in FY2014, ₹378m in FY2013, ₹545m in FY2012
- The company has highly profitable business model: ROIC is 40.7%
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 6.4%. Revenue decline was accelerating on average at -6.2 pp per annum in FY2012-FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.7 pp from 25.3% to 27.0% in FY2016. EBITDA Margin followed a growing trend at 2.2 pp per annum in FY2012-FY2016.
Net Income margin increased on 2.2 pp from 14.8% to 17.1% in FY2016. During the last 5 years Net Income margin bottomed in FY2013 at 12.1% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.1%. Procter & Gamble Hygiene & Health Care showed almost no change in CAPEX/Revenue from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at high and attractive ROIC (40.7%) and ROE (30.9%). ROIC increased slightly on 0.64 pp from 40.1% to 40.7% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 73.9%.
Management team
Prashant Bhatnagar is a Procter & Gamble Hygiene & Health Care's CFO. Prashant Bhatnagar has spent 6 years at the company.
Financial and operational results
Procter & Gamble Hygiene & Health Care ($PGHH) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 12,974 | 16,849 | 20,472 | 23,323 | 24,817 | 6.4% |
| SG&A | | | | | 1,826 | |
| EBITDA | 2,111 | 2,589 | 4,241 | 4,974 | 6,072 | 22.1% |
| Net Income | 1,813 | 2,032 | 3,020 | 3,461 | 4,232 | 22.3% |
Balance Sheet
|
|---|
| Cash | 1,762 | 1,639 | 2,677 | 6,171 | 10,734 | 73.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 545 | 378 | 1,471 | 784 | 527 | -32.9% |
Ratios
|
|---|
| Revenue growth | 29.4% | 29.9% | 21.5% | 13.9% | 6.4% | |
| EBITDA growth | 27.2% | 22.6% | 63.8% | 17.3% | 22.1% | |
|
|---|
| EBITDA Margin | 16.3% | 15.4% | 20.7% | 21.3% | 24.5% | 3.1% |
| SG&A, % of revenue | | | | | 7.4% | |
| Net Income Margin | 14.0% | 12.1% | 14.8% | 14.8% | 17.1% | 2.2% |
| CAPEX, % of revenue | 4.2% | 2.2% | 7.2% | 3.4% | 2.1% | -1.2% |
|
|---|
| ROIC | 28.1% | 30.3% | 43.2% | 40.1% | 40.7% | 0.6% |
| ROE | 27.9% | 27.1% | 33.4% | 31.0% | 30.9% | -0.1% |
| Net Debt/EBITDA | -0.8x | -0.6x | -0.6x | -1.2x | -1.8x | -0.5x |
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | - | 48.5% | -13.1% | 17.0% | 33.2% |
| Emami ($EMAMILTD) | - | 16.9% | 7.2% | 21.8% | 18.3% |
| Godrej Consumer Products ($GODREJCP) | - | 31.7% | 18.6% | 8.7% | 8.7% |
| Dabur India ($DABUR) | - | 16.3% | 15.0% | 10.3% | 8.0% |
| Marico ($MARICO) | - | 15.5% | 2.0% | 22.3% | 7.0% |
| |
|---|
| Median (8 companies) | - | 17.2% | 9.6% | 14.1% | 7.5% |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | - | 29.9% | 21.5% | 13.9% | 6.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bajaj Corp ($BAJAJCORP) | 24.6% | 28.4% | 27.7% | 29.0% | 31.2% |
| Bliss Gvs Pharma ($BLISSGVS) | 27.2% | 28.1% | 20.9% | 25.7% | 29.0% |
| Emami ($EMAMILTD) | 20.9% | 20.5% | 24.3% | 25.0% | 26.1% |
| Colgate-Palmolive (India) ($COLPAL) | 21.7% | 21.0% | 18.6% | 20.7% | 22.6% |
| Hindustan Unilever ($HINDUNILVR) | 15.2% | 16.0% | 16.6% | 17.4% | 18.3% |
| |
|---|
| Median (8 companies) | 19.5% | 18.3% | 17.6% | 19.0% | 20.5% |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | 16.3% | 15.4% | 20.7% | 21.3% | 24.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Emami ($EMAMILTD) | 8.0% | 5.0% | 3.6% | 5.0% | 69.3% |
| Colgate-Palmolive (India) ($COLPAL) | 3.8% | 4.9% | 9.0% | 7.5% | 6.6% |
| Dabur India ($DABUR) | 4.4% | 3.9% | 3.0% | 3.4% | 2.6% |
| Hindustan Unilever ($HINDUNILVR) | 1.2% | 1.7% | 2.1% | 1.9% | 2.5% |
| Bliss Gvs Pharma ($BLISSGVS) | 8.7% | 5.0% | 16.7% | 7.0% | 2.5% |
| |
|---|
| Median (8 companies) | 4.0% | 4.5% | 3.3% | 3.0% | 2.5% |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | 4.2% | 2.2% | 7.2% | 3.4% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hindustan Unilever ($HINDUNILVR) | 99.9% | 114.4% | 133.0% | 133.9% | 136.2% |
| Colgate-Palmolive (India) ($COLPAL) | 121.4% | 120.4% | 104.4% | 99.9% | 85.6% |
| Bajaj Corp ($BAJAJCORP) | - | 36.9% | 36.2% | 46.5% | 54.8% |
| Cupid ($CUPID) | 6.0% | 8.5% | 3.1% | 35.1% | 46.1% |
| Marico ($MARICO) | 23.2% | 22.6% | 26.9% | 36.1% | 40.6% |
| |
|---|
| Median (10 companies) | 26.3% | 29.6% | 28.9% | 36.1% | 40.6% |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | 28.1% | 30.3% | 43.2% | 40.1% | 40.7% |
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 |
| Bliss Gvs Pharma ($BLISSGVS) | 0.0x | 1.1x | 1.9x | 1.4x | 0.6x |
| Dabur India ($DABUR) | 0.8x | 1.2x | 0.3x | 0.5x | 0.4x |
| Marico ($MARICO) | 1.5x | 1.3x | 0.9x | 0.3x | 0.0x |
| |
|---|
| Median (9 companies) | 0.6x | 0.5x | 0.3x | -0.1x | 0.0x |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | -0.8x | -0.6x | -0.6x | -1.2x | -1.8x |
