Cadbury's fantastic 3Q performance - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Cadbury's fantastic 3Q performance

Nov 3, 2000

Improved operating margins helped Chocolate King Cadbury to record a growth of 32% in profits for the third quarter ended September 2000. Excluding the adjustment for VRS expenditure profits have increased by 26%.

(Rs m) 3QFY00 3QFY01 Change
Sales 1,668 1,867 11.9%
Other Income 31 23 -26.5%
Expenditure 1,424 1,539 8.0%
Operating Profit (EBDIT) 243 328 34.7%
Operating Profit Margin (%) 14.6% 17.6%  
Interest 9 6 -24.7%
Depreciation 63 67 5.7%
Profit before Tax 202 277 37.1%
Other Adjustments 2 -6  
Tax 66 106 60.1%
Profit after Tax/(Loss) 135 178 32.2%
Net profit margin (%) 8.2% 9.2%  
No. of Shares (eoy) (m) 23.8 35.7  
Diluted number of shares (m) 35.7 35.7  
Diluted Earnings per share* 15.1 19.9  
P/E (at current price) 41 31  
*(annualised)      

Cost control initiatives taken by the company and better efficiencies resulted in improvement in profit margins. Raw material cost of the company increased by mere 2% due to low cocoa prices. Cocoa account for around 48% of total raw material cost of the company. However, higher sales promotion expenses, 12% of sales in 3QFY01 (10% as on December 1999) slowed down the profit growth of the company. But it has actually helped Cadbury in maintaining topline growth in the scenario of increasing challenges in the market.

At the current market price of Rs 613 Cadbury is trading at a P/E multiple of 31 times its 3QFY01 annualised earnings and 41 times its FY01 annualised earnings. The company has a market cap to sales ratio of 3.8 times which is comparatively higher than its peers in the industry. Our projections are in line with the company's performance during the 9 months ended September 2000.


Equitymaster requests your view! Post a comment on "Cadbury's fantastic 3Q performance". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

TRACK CADBURY (I)

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

MARKET STATS