Feb 26, 2001|
Cadbury's FY01 profits up 42%
Cadbury has beaten market expectations and declared a remarkable 42% growth in profits for the year ended December '00. The company's profit growth in fourth quarter were even more encouraging at 61%.
However, topline growth of the company in the December quarter slowed down to 3% compared to its outstanding performance in the past three quarters (1QFY01-20%, 2QFY01-13% and 3QFY01-12%). This could be due to stiff competition in the chocolate confectionery market from its competitor Nestle.
|Year ended December (Rs m)
|Profit after Tax/(Loss)
|Net profit margin (%)
|No. of Shares (eoy) (m)
|Diluted Earnings per share
|P/E (at current price)
Nevertheless, even if we exclude other income, Cadbury's profits have shown a fantastic growth of 39% which is comparatively higher than its peers in the industry.
At the current market price of Rs 440 Cadbury trades at a P/E multiple of 30 times with a market cap to sales ratio of 3 times. The company's current valuations are comparatively less than HLL and Nestle which get P/E's of 35 and 36 times respectively.
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