Procter & Gamble Hygiene & Healthcare Ltd. share price target

3QFY19 (June-ending) net sales witnessed third consecutive quarter of strong sales revival at 22.9% YoY to INR7b (v/s est. of INR6.5b). EBITDA was in line at INR1.44b (down 1.9% YoY) and PAT was slightly below expectations at INR903m (v/s est. of INR928m), up 8.3% YoY. Management mentioned that adjusted for GST impact in the base quarter, sales growth was ~15%. Gross margins contracted 630bp YoY to 57.7%, likely due to (a) impact of 10% price cuts taken in Whisper Choice Ultra, and (b) absence of input tax credit under GST for sanitary napkins. Adspend declined off a high base by 270bp YoY...

7 February 2019 which can be attributed to a combination of factors, such as (a) high commodity inflation levels, as also witnessed by peers so far in the Dec18 results, (b) 10% price cuts in and (c) absence of input tax credit under GST for sanitary napkins. EBITDA margin shrank 650bp YoY to 23.4%, led by higher ad spends (+140bp YoY fourth straight quarter of sharp increase YoY), employee cost (+40bp YoY) and other expenses (+10bp YoY). Net sales were up by 18.2% YoY to INR16.1b, EBITDA rose 0.8% YoY to INR4b and PAT grew 5.0% YoY to INR2.6b. Absence of input tax credit and price reduction will have an impact on margins in the subsequent quarters as category growth potential in the feminine hygiene segment (~70% of sales) and potential for market share growth because of its considerable moats and (2) potentially huge margin gains from premiumization over the longer term in feminine hygiene.

8 January 2019 The aggression demonstrated by the PGHH management in recent quarters on increase in ad spends, new launches and price cuts, wherever required. Continued market share gain in Vicks. New product - Vicks Baby Rub, launched in FY18 is reportedly doing very well. While valuations of 51.7x FY20 EPS implies that near-term upside is limited, category growth potential in the Feminine Hygiene segment (~67% of sales) and potential for market share growth because of its considerable moats, and (2) Potentially huge margin gains from premiumization in Feminine Hygiene over the longer term. Increasing pace of distribution expansion, continuing strong pace of category development efforts in schools to boost awareness and growth, rising ad spends after a lull in preceding years, healthy pipeline of new products and willingness to take price cuts whenever required to boost growth are all encouraging developments that should aid rapid growth for the company over the long term.

Procter & Gamble Hygiene and Health Care Ltd Q2FY19 results Comment Revenue rose by 50.92% to Rs. 791.8 Cr in Q1JY19 when compared to the previous quarter. Also, it rose by 20.41% when compared with Q1JY18.

Revenue fell by 19.21% to Rs. 568.89 Cr in Q3JY18 when compared to the previous quarter. Procter & Gamble Hygiene and Health Care Ltd Q3JY18 results Comment

2QFY18 net sales grew 9.5% YoY (against our estimate of 19% YoY) to INR7.0b. EBITDA declined 8% YoY (against our estimate of 6% YoY growth) to INR2.1b. Adjusted PAT declined 12.9% YoY (against our estimate of flat PAT) to INR1.3b. Management called out strong performance in both Feminine Hygiene and Healthcare, but sales were expected to be higher on weak base. Since gross and EBITDA margins for base quarter 2QFY17 were unusually high; we were expecting 380bp EBITDA margin decline. Operating margin decline was steeper than expected at 570bp YoY to 29.9%. Gross margin declined 350bp YoY to 60.1%. Encouragingly, ad spend to sales grew by 110bp YoY and by 24% YoY in absolute terms. This expense has been lower than expected in recent quarters. Other expenses increased 120bp YoY to 16.6%. Other income declined sharply due to massive dividend payout in May 2017

Sales were up 10.5% YoY to INR 6.14b (est. 6.23b). While gross margins grew 280bp YoY, these gains were offset by higher advertising and promotion spend (up 320bp YoY) and other expenses (up 210bp YoY) leading to 40bp decline in...

Procter & Gamble Hygiene and Health Care (P&G;)'s 3QFY2016 results are broadly in-line with our estimates. For the quarter, the company's top-line grew by ~11% yoy to Rs614cr while the reported PAT grew ~12% yoy to Rs97cr. Key highlights: For 3QFY2016, the company's top-line grew by ~11% yoy to ~Rs614cr (against our estimate of ~Rs..