Malted beverage major, SmithKline Beecham Consumer Healthcare (SBCH), has posted impressive growth in the second quarter. In 2QFY02, the company has declared a 45% growth in bottomline. What is even more interesting is that its topline has shown a growth of 17.5%.
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However, the relatively high growth percentage in sales clocked in 2QFY02 should be reviewed against last year's reported results for the corresponding period, which were influenced by subdued trading.
SBCH improved its operating margins by a significant 440 basis points. Its advertising expenses declined by 12% during the quarter to Rs 152 m. This and a 27% jump in other income helped the company post an impressive 45% growth in bottomline, despite the tax provisioning nearly doubling.
On a consolidated half yearly basis, SBCH's topline has grown by 21% and its bottomline by 37%. The performance indicates the stability of SBCH's growth.
On the current price of Rs 435 the stock trades at a P/e multiple of 15 times our projected earnings for FY02. The company's market cap to sales comes to about 2.3 times. The stock has already risen 10% since its 1QFY02 results. Going forward, the stock is likely to see a further upside based on the company's attractive valuations.
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.
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