GlaxoSmithKline Consumer Healthcare Ltd. share price target

GSK Consumer (SKB) posted a 5.2% YoY decline (est. of +7% YoY) in net sales (including operating income) to INR9.4b (Ind-AS). Excluding other operating income (+3.8% YoY), net sales declined 5.7% YoY in 1QFY17. EBITDA declined...

GSK Consumer is the largest player in the Rs18bn Indian health drink market, with a 70% market share. The category has entered a new orbit, with growth rates sustaining above 10%. Value-added variants of Horlicks account for ~18% of brand sales. With super premium HFDs priced at INR 1000 / Kg accounting for 10% of value and growing at 35%, GSK Consumer intends to enter the segment. Also, management aims to increase non-HFD segment's share from the current 5% to 15% over the next 3 years by focusing on Sensodyne toothpaste, noodles, oats, biscuits and nutri-bars. Reaches 800,000 outlets. GSK Consumer has a strong brand...

Revenue was below our/street estimates because of slowdown in rural markets and one time impact of 560bps due to sales reversal in base quarter Gross margins rose 110bps yoy but fell 210bps qoq as input prices have started rising...

ICICI Securities Ltd | Retail Equity Research GSK Consumer Healthcare (GCHL) reported disappointing Q4FY16 numbers as net sales declined 9.6% YoY to | 1052.8 crore (I-direct...

Flat volume growth persists, long term outlook positive Net sales down 8.8% YoY: GSK Consumer (SKB) posted 8.8% YoY decline in net sales (including operating income) to INR11.1b (our estimate: INR12.8b)....

GlaxoSmithKline Consumer Healthcare (GSK Consumer) reported numbers for 4QFY16 fail short of our estimates due to multiple one-off impacts amid slowdown in consumer demand. While its reported sales fell 9.6% yoy to Rs10.5bn, net profit slipped 8.2% yoy to Rs1.8bn. However, excluding the one-offs, underlying net sales and PBT grew by 1.5% and 5.1%, respectively. We expect GSK Consumer to post revenue and earnings CAGR of 11.8% & 13.4%, respectively through FY16-18E and revise our recommendation on the stock from HOLD to ACCUMULATE with an upwardly revised Target Price of Rs6,305. Exceptional items impact reported numbers...

Revenue was in line with our estimates and was led by price/mix and flat volumes Gross margins rose 410bps yoy due to softer commodity costs/cost reduction initiatives Horlicks/Boost continued to gain market shares in respective categories...

GSK Consumer is the largest player in the Rs18bn Indian health drink market, with a 70% market share. The category has entered a new orbit, with growth rates sustaining above 10%. Value-added variants of Horlicks account for ~18% of brand sales. With super premium HFDs priced at INR 1000 / Kg accounting for 10% of value and growing at 35%, GSK Consumer intends to enter the segment. Also, management aims to increase non-HFD segment's share from the current 5% to 15% over the next 3 years by focusing on Sensodyne toothpaste, noodles, oats, biscuits and nutri-bars. Reaches 800,000 outlets. GSK Consumer has a strong brand...

Higher gross margins; Lower A&P; boosts profitability GlaxoSmithKline Consumer's 3QFY16 revenues came in line at Rs9.9bn, a growth of 1.4% yoy. EBITDA and net profits however beat our estimates mainly on the back of lower A&P; expenses. EBITDA increased 73.6% to Rs1.2bn (estimate of Rs789mn), while net profit increased 36.8% to Rs1.3bn vs. our estimates of Rs1.1bn. Volumes remained flat for the quarter. We expect 8.6% and 14.7% CAGR in revenues and earnings through...

Revenue was below our/consensus estimates due to flattish volume growth and higher than expected fiscal excise duty impact; strong price growth maintained even in the challenging current operating environment...