Glaxo SmithKline Consumer Healthcare Ltd Analyst …...Quarter Highlights Impressive Sales Growth at...
Transcript of Glaxo SmithKline Consumer Healthcare Ltd Analyst …...Quarter Highlights Impressive Sales Growth at...
Quarter Highlights
Impressive Sales Growth at 22% • Driven by strong volume growth of 16%• Best in the FMCG sector in volume
Investments behind brands continue ; A&P growing at 33%
Cost of goods sold higher by 300 bps • High Input costs • Planned lower production• Emphasis on Cost reduction initiatives
Operating profits grew by 13% ; PBT margins slightly higher at 14% leveraging treasury initiatives
PAT at Rs 83 crs grew by 15% Q on Q
Sustained Growth….
Rs in crs
567
689
Q 2 10 Q 2 11
Sales (Gross)
537
653
Q 2 10 Q 2 11
Sales (Net)
72
82
Q 2 10 Q 2 11
PAT
108
122
Q 2 10 Q 2 11
PBT
94.9% 93.8%
5.1% 6.2%
Q 2 10 Q 2 11
Increasing contribution of new products……
% share to total sales
Non HFD
HFD
Regional Split
% share to total sales
89%
11%
Domestic Exports
6%
34%
44%
4% 11%
North East South West Exports
% Increase in regions
Region % Inc
North 31%
South 16%
East 20%
West 16%
Exports 57%
Other Income growing fast….
Rs in crs
13.8
8.9
4.5
18.0
14.0
4.0
Business Auxillary Comm Interest Income Others
Q 2 2010 Q 2 2011
Inflationary trend in input costs
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q 1 2011 Q 2 2011
Wheat Floursoftening a bit
18
19
20
21
22
23
24
25
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q 1 2011 Q 2 2011
Malted Barleyhigh inflation continues
16%
120 125 130 135 140 145 150 155 160 165 170 175
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q 1 2011
Q 2 2011
SMP16%
-
5
10
15
20
25
30
35
40
45
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q 1 2011
Q 2 2011
Sugarstill on the higher side20% at all time high levels
6%
Represents Q on Q inflation
Our Cost Structures…..
Cost as % to sales
38%
21%
14%
11%
2%
41%
19%
15%
10%
2%
Material Other Costs A&P Employee Dep
Q 2 10 Q 2 11
Inflation hits RM
costs
Investmentbehind brands
continue
Sustained Negative Working Capital …..
109
43
(61)(69)
(118)
(65)
(160)
(108)
(211)
(102)
(250)
(200)
(150)
(100)
(50)
-
50
100
150
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11
Market Performance…..Jan-0
7
Fe
b-0
7
Mar-
07
Apr-
07
May-0
7
Jun-0
7
Jul-07
Aug-0
7
Sep-0
7
Oct-
07
Nov-0
7
Dec-0
7
Jan-0
8
Fe
b-0
8
Mar-
08
Apr-
08
May-0
8
Jun-0
8
Jul-08
Aug-0
8
Sep-0
8
Oct-
08
Nov-0
8
Dec-0
8
Jan-0
9
Fe
b-0
9
Mar-
09
Apr-
09
May-0
9
Jun-0
9
Jul-09
Aug-0
9
Sep-0
9
Oct-
09
Nov-0
9
Dec-0
9
Jan-1
0
Fe
b-1
0
Mar-
10
Apr-
10
May-1
0
Jun-1
0
Jul-10
Aug-1
0
Sep-1
0
Oct-
10
Nov-1
0
Dec-1
0
Jan-1
1
Fe
b-1
1
Mar-
11
Apr-
11
May-1
1
Jun-1
1
Sensex FMCG GSK
18846
4045
2414
1906
596
GSK outperforms Sensex and FMCG index
14091
38.7 44.8
55.4
71.3
2007 2008 2009 2010
EPS Growth