The 6 reports from 2 analysts offering long term price targets
for Gillette India Ltd. have an average target of 6172.50. The consensus estimate
represents an upside of 7.45%
from the last price of 5744.60.
We pored over Gillette India's (GILL) annual report for FY20 (June-ending). Below are the key excerpts from the same: FY20 (June-ending) performance: Sales, EBITDA and Adj. PAT declined by 9.8%, 5.8% and 9.0%, respectively. Gross margin was up by 70bps at 56.7%, leading to EBITDA margin expansion of 90bps to 21.4%. Advertising expenses were down 9.4% at ~Rs2bn (-110bps to 10.8% of revenues) and trade incentives were down by 61.1% at Rs230mn. The company declared a total dividend of Rs49 per share for FY20. Industry & demand environment: Pandemic-led lockdown resulted in reduction of shaving...
Gillette India's (GILL) 1QFY21 (June-ending) revenue grew by 11.7% YoY to Rs5.16bn (vs our est. 1.3% decline to Rs4.56bn). EBITDA grew by 35.2% YoY to Rs1.3bn (vs our est. 25.8% growth to Rs1.23bn). PAT grew by 54.3% YoY to Rs953mn (vs our est. 34.5% growth to Rs831mn). As per the management's estimate, profit excluding one-time items, was up ~20% YoY. Grooming business revenue (76.6% of revenue in 1QFY21 vs 74.3% in 1QFY20) grew sharply by 15.2% YoY to Rs3.96bn with segment EBIT margin expanding by 170bps YoY to 24.8%. Oral Care business revenue grew by 1.7% YoY to Rs1.21bn with segment EBIT margin expanding by 1150bps YoY to 18.8% on a lower base. Overall gross margin was down by 440bps YoY at 50% (-710bps QoQ)....
Beat led by sharp cut in ad spends; Sales back to pre-Covid levels Gillette India's (GILL) quarterly performance was affected by the nationwide lockdown as 4QFY20 (June-ending) revenue declined by 24.4% YoY to Rs3.5bn (vs our est. 29.9% decline to Rs3.3bn). EBITDA grew by 169.2% YoY to Rs807mn (vs our est. 30.1% growth to Rs390mn). Adj. PAT declined by -1.9% YoY to Rs450mn (vs our est. 51.9% decline to Rs202mn). Grooming business revenue (81.2% of revenue in 4QFY20 vs 77.9% in base quarter) declined by 21.1% YoY to Rs2.9bn as shaving frequency reduced among consumers during the April-May period because of the lockdown. The company saw a sharp recovery in June/July to pre-COVID levels with easing of the lockdown. Grooming business EBIT...
Gillette India's (Gillette) quarterly performance was severely disrupted by the nationwide lockdown. Gillette's 3QFY20 revenue declined by 12.7% YoY to Rs4.07bn (vs our est. 6.5% decline to Rs4.35bn). EBITDA declined by 45% YoY to Rs804mn (vs our est. 9.5% decline to Rs1.3bn). Adj. PAT declined by 40.3% to Rs524mn (vs our est. 6.3% growth to Rs933mn). If not for the Covid-19 impact, the company was expecting to deliver a mid-single digit sales growth for the quarter. The sharp decline in topline was due to the grooming business. Grooming business sales declined by 18.5% YoY to Rs3.1bn while the oral care business grew by 13.3% to Rs963mn, albeit on a lower base. In terms of mix for the quarter, the grooming business contributed 76.3% to the sales versus 81.7% in the base quarter while...
Being the leading company, Gillette has always been bringing in a unique and innovative set of products for its consumers. Its products constitute an entire range for Men's grooming including the razors, skin guard, replacement razors, pre & post shave products including shaving creams, gels & foams, skin care etc. And eventually, in the female's category Gillette Venus in the premium segment is gaining traction. Thereby, we believe the unique launches embarks good future ahead for the company. If we Take fundamental triggers into consideration, company has a good balance sheet with sound financial ratios....
Gillette India (Gillette) delivered weak performance for yet another quarter. The miss was largely on account of continued de-growth in the Grooming segment which caused the overall topline to drag despite healthy growth in the Oral segment. Topline performance in 2QFY20 declined by 3.4% YoY. While the mix between Grooming and Oral Care was in line with our estimate the continued weakness in the Grooming segment is a cause for concern. After slight moderation in growth rate in the previous quarter the Oral Care segment delivered a healthy growth of 12% YoY on a high base of last year, while the Grooming segment remained a drag, declining by 8% YoY. As the demand scenario remains soft amid challenging economic conditions and tight liquidity,...
Gillette Indias (Gillette) 1QFY20 operating and net profit performance trailed expectations largely on account of topline growth falling significantly below expectation. Topline performance in 1QFY20 disappointed by remaining almost flat YoY. While the mix between Grooming and Oral Care was in line with our estimates growth in the respective categories has disappointed. Growth in both the categories came in much lower than expected with nil growth in Grooming and Oral Care registering a modest growth of 5%. The subdued topline was likely a result of challenging economic conditions and tight liquidity conditions in certain markets. In our opinion, the company still needs to build on the brand equity of Mach 3 Start, which can help drive growth in...
Gillette India's (Gillette) 4QFY19 operating and net profit performance is below expectations largely on account of increased marketing investment, which is up nearly 42% YoY. Topline performance is slightly above expectation, largely driven by the Oral Care business, which grew by 42% YoY. In the Oral Care business, the company continues to demonstrate strong capability and its product innovations such as Cavity Defense Black' and Neem' infused toothbrushes have been received extremely well in the market. While the Grooming business witnessed improvement in growth rate to around 7% YoY, it is still below expectation. In our opinion, the company still needs to build on the brand equity of Mach 3 Start, which can help drive growth...
Gillette Indias (GILL) earnings in 3QFY19 continued to display volatility and unlike the previous quarter, top-line delivery was somewhat short of expectation, especially on account of the oral care segment. However, margins were well ahead as marketing investments witnessed moderation. Top-line performance, led by grooming business, was around 10% below expectation. While grooming business witnessed improvement in the growth rate to around 8%, it was still below expectation while oral care business disappointed fairly significantly by around 24%. In our opinion, the company still needs to build on the brand equity of Mach 3 Start which can help drive growth rate in its premium grooming business. Gillette Guard and Venus...
Gillette India's (GILL) 2QFY19 operating and net earnings performance was below expectations largely on account of increased marketing investments which were up nearly 68%. Top-line performance led by oral care business was around 2% above expectation. In oral care business, the company continues to demonstrate strong capability and its product innovations such as Cavity Defense Black' and Neem' infused toothbrushes have been received extremely well in the market. These innovations along with strong go-to-market execution capability helped the company to deliver a growth of nearly 36% YoY during the quarter. In the grooming segment, while the company's performance in the entry level (Gillette Guard) and feminine blades (Venus) has been strong so far, it has faced challenges in its...
Gillette India's (GILL) 1QFY19 top-line performance was largely in line with our expectations whereas currency depreciation and high inflation led to operating profit settling below our estimate. Revenue growth of 12% was led by robust volume growth and the ongoing improvement in product mix. Both the businesses namely, grooming and oral care, grew ahead of the category and posted strong double-digit growth. Increased inflation and currency depreciation has impacted gross margin, although the same could be partially offset by operating efficiency and an improved product mix. GILL aggressively spent on the brands and also on marketing development activities, whereas other overheads were kept intact. Therefore, despite the pressure on raw materials side, EBITDA of...
Gillette India's (GILL) earnings performance has usually been very volatile and 4QFY18 was no different. To some extent, this volatility can be attributed to the nature of products (multiple usage) and its distribution structure wherein it relies a lot more on large distributors and wholesalers. Transition from 28% to 18% GST rate also had an impact on revenues. On reported basis, revenues were flat YoY. We believe comparable sales growth could be in mid single-digit for the quarter. Our channel checks suggest that the underlying trends are healthy and the consumer off-take of grooming products is encouraging. GILL's gross margin improved by 220bps YoY during the quarter, which was in line with our expectation. Sustainability of gross margin is a key factor for judging the magnitude of...
Gillette India's (GILL) 3QFY18 performance was significantly below our expectations mainly on account of the exceptional base quarter, transition from 28% to 18% GST regime and focus on higher media spends. Although there was a decline in revenues and profitability during the quarter, our channel checks indicate that the underlying trends in grooming are fairly strong and we believe the long-term story led by premiumisation and margin expansion is intact. Gross margin has shown a robust 460bps YoY margin expansion in 9MFY18. Oral care segment's performance has been satisfactory, both on the top-line and profitability fronts. In our view, higher media spending is positive wherein the market leader is exploiting the business...
Gillette India's or GIL's overall top-line performance in 1QFY18 was in line with our expectation, but surprised us in respect of category-wise growth. Operating margin delivery was fairly robust. Operating profit grew 32% and beat our estimate by 22%. Net income of Rs643mn was in line with expectation. Grooming yet to pick up momentum across channels: GIL reported comparable sales growth of 10% which was in line with our expectation. 1% comparable growth in grooming category was below expectation, impacted because of a highly competitive environment. Lower-than-expected restocking and increase in sales promotion could have hampered...
Margins Enhanced on the Back of Improved Productivity and Operational Efficiencies: During the quarter, Gillette has reported total income from operations atRs.4193 Mn, posting YoY growth of 7.6% when compared to Rs.3897 Mn inQ2FY16. The companys EBITDA margin enhanced by 658 bps on YoY basis to reach 19.2% backed by cost efficiencies and improved productivity during thequarter compared with 12.6% during Q2FY16.
Gillette has tied up with leading online player Snapdeal to launch its online store on the platform, to make deeper penetration into Indian markets and reach larger customer base. The company exclusively launches certain range of groomingsolutions, including premium body razors, exclusively on the online store on Snapdeal. Shift towards e-commerce players should see good traction in sales of the company going forward on the back of ease of shopping and availability of the products.
