Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
SBCH turnover jumps 25% - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Apr 20, 2001

    SBCH turnover jumps 25%

    SmithKline Beecham Consumer Healthcare (SBCH) has declared a 26% jump in its 1QFY02 bottomline YoY. The company not only continues to show strong growth in its net profits, its topline too has grown by nearly 25% YoY.

    (Rs m) 1QFY01 1QFY02 Change
    Gross Sales 1,726 2,152 24.7%
    Other Income 110 83 -24.5%
    Expenditure 1,467 1,747 19.1%
    Operating Profit (EBDIT) 259 406 56.6%
    Operating Profit Margin (%) 15.0% 18.8%  
    Interest 22 24 7.7%
    Depreciation 37 33 -11.1%
    Profit before Tax 311 432 38.9%
    Tax 84 122 45.6%
    Extraordinary expenses   24  
    Profit after Tax/(Loss) 227 285 25.7%
    Net profit margin (%) 13.2% 13.3%  
    No. of Shares (eoy) (m) 45.4 45.4  
    Diluted Earnings per share* 20.0 25.2  
    Current P/e ratio   15.7  

    SBCH is one of the few FMCG companies to show double digit growth in turnover. In FY01 too, the company finished the year with a 19% topline growth YoY.

    SBCH strengthened its dominating position in the malted beverages segment with the acquisition of Viva and Maltova brands from Jagatjit Industries. The company is spending Rs 2.4 bn on a new plant (26,000 tonnes per annum) to manufacture 'Horlicks' (its main brand). This will enable it in overcoming a potential capacity constraint in the future. Moreover steps are being taken to increase capacity at its existing plant by 6,000 tonnes per annum. Productivity levels are expected to improve substantially as the new plant is based on the latest available technology. However, the profit margin growth of the company has stagnated, as it will not be able to capitalise the expenditure.

    SBCH will act as a sourcing base for malted food drinks for the parent company’s other Asian markets, once the expanded capacity is commissioned. Horlicks exports will thereafter aid volume growth.

    At the current levels, the SBCH stock quotes at a P/e multiple of 15.7 times its annualised 1QFY02 earnings. Given SBCH's consistent track record, the company will more likely than not emerge stronger after the capacity expansion.



    Equitymaster requests your view! Post a comment on "SBCH turnover jumps 25%". Click here!


    More Views on News

    GSK Consumer: On the Recovery Path (Quarterly Results Update - Detailed)

    Jun 20, 2017

    While GSK consumer reported muted revenue growth, volumes are seen to be recovering.

    GSK Consumer: Price Hike Hurts Volumes (Quarterly Results Update - Detailed)

    Nov 30, 2016

    GSK Consumer Healthcare declared results for the quarter ended September 2016. The revenues dropped by 1.3% during the quarter as compared to a year ago; while the profits declined by 16.6% YoY during the quarter.

    GSK Consumer: Slowdown in demand impacts sales (Quarterly Results Update - Detailed)

    Oct 5, 2016

    GSK Consumer Healthcare has announced the first quarter results of the financial year 2016-2017 (1QFY17). The company's sales declined by 1.4% YoY while net profit rose by 2.9% YoY during the quarter.

    GSK Consumer: A Forgetful Year (Quarterly Results Update - Detailed)

    Jun 1, 2016

    GSK Consumer Healthcare announced its results for the quarter and year ended March 2016. During the quarter, sales and profit came in lower by 9% YoY and 8% YoY respectively.

    GSK Consumer: Feeling the Growth Pressures? (Quarterly Results Update - Detailed)

    Feb 15, 2016

    GSK Consumer Healthcare announced its results for the quarter ended December 2015. While revenues were up by 2% YoY, profits were higher by 37% YoY.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 21, 2017 12:41 PM


    • Track your investment in GSK CONSUMER with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Compare Company With Charts