PROCTER & GAMBLE HEALTH 2022-23 Annual Report Analysis

Fri, 30 Jun

PROCTER & GAMBLE HEALTH has announced its results for the year ended June 2023. Let us have a look at the detailed performance review of the company during FY22-23.

PROCTER & GAMBLE HEALTH Income Statement Analysis

• Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.4% in FY as against 24.0% in FY.
• Depreciation charges increased by 3.8% and finance costs increased by 83.3% YoY, respectively.
• Other income grew by 39.4% YoY.
• Net profit for the year grew by 19.2% YoY.
• Net profit margins during the year grew from 17.3% in FY to 18.7% in FY.

PROCTER & GAMBLE HEALTH Income Statement 2022-23

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*	% Change
Net Sales	Rs m	11,144	12,296	10.3%
Other income	Rs m	132	184	39.4%
Total Revenues	Rs m	11,276	12,480	10.7%
Gross profit	Rs m	2,677	3,247	21.3%
Depreciation	Rs m	271	281	3.8%
Interest	Rs m	4	8	83.3%
Profit before tax	Rs m	2,534	3,142	24.0%
Tax	Rs m	609	847	39.2%
Profit after tax	Rs m	1,925	2,295	19.2%
Gross profit margin	%	24.0	26.4
Effective tax rate	%	24.0	27.0
Net profit margin	%	17.3	18.7

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PROCTER & GAMBLE HEALTH Balance Sheet Analysis

• The company's current liabilities during FY stood at Rs 7 billion as compared to Rs 6 billion in FY, thereby witnessing an increase of 11.7%.
• Current assets rose 19% and stood at Rs 12 billion, while fixed assets rose 11% and stood at Rs 11 billion in FY.
• Overall, the total assets and liabilities for FY stood at Rs 22 billion as against Rs 19 billion during FY, thereby witnessing a growth of 15%.

PROCTER & GAMBLE HEALTH Balance Sheet as on June 2023

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*	% Change
Networth	Rs m	6,092	7,431	22.0
Current Liabilities	Rs m	6,077	6,791	11.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,379	22,330	15.2
Current assets	Rs m	9,839	11,713	19.0
Fixed Assets	Rs m	9,540	10,617	11.3
Total Assets	Rs m	19,379	22,330	15.2

PROCTER & GAMBLE HEALTH Cash Flow Statement Analysis

• PROCTER & GAMBLE HEALTH's cash flow from operating activities (CFO) during FY stood at Rs 2 billion, an improvement of 39.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY stood at Rs -215 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY stood at Rs -985 million, an improvement of 66% on a YoY basis.
• Overall, net cash flows for the company during FY stood at Rs 1 billion from the Rs -1 billion net cash flows seen during FY.

PROCTER & GAMBLE HEALTH Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Jun-22	Jun-23
Cash Flow from Operating Activities	Rs m	1,695	2,360	39.2%
Cash Flow from Investing Activities	Rs m	-255	-215	-
Cash Flow from Financing Activities	Rs m	-2,886	-985	-
Net Cash Flow	Rs m	-1,447	1,160	-

Current Valuations for PROCTER & GAMBLE HEALTH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 138.2, an improvement from the EPS of Rs 116.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,249.2, stands at 38.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 7.1 times.
• The company's price to cash flow (P/CF) ratio stood at 29.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*
Sales per share (Unadj.)	Rs	671.3	740.7
TTM Earnings per share	Rs	116.0	138.2
Diluted earnings per share	Rs	116.0	138.2
Price to Cash Flow	x	31.7	29.8
TTM P/E ratio	x	36.1	38.0
Price / Book Value ratio	x	13.3	10.3
Market Cap	Rs m	81,132	76,761
Dividends per share (Unadj.)	Rs	52.5	95.0

Ratio Analysis for PROCTER & GAMBLE HEALTH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY, from 1.6x during FY. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 409.1x during FY, from 604.3x during FY. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 30.9% during FY, from 31.6% during FY. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 42.4% during FY, from 41.7% during FY. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 10.3% during FY, from 10.0% during FY. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*
Current ratio	x	1.6	1.7
Debtors’ Days	Days	273	343
Interest coverage	x	604.3	409.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.0	10.3
Return on equity	%	31.6	30.9
Return on capital employed	%	41.7	42.4

To see how PROCTER & GAMBLE HEALTH has performed over the last 5 years, please visit here.

PROCTER & GAMBLE HEALTH Share Price Performance

Over the last one year, PROCTER & GAMBLE HEALTH share price has moved up from Rs 4,006.0 to Rs 4,674.5, registering a gain of Rs 668.5 or around 16.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,883.5 (up 0.4%). Over the last one year it has moved down from 24,303.8 to 21,883.5, a loss of 2,420 points (down 10.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for PROCTER & GAMBLE HEALTH and quarterly results for PROCTER & GAMBLE HEALTH)