P&G Hygiene - Topline Momentum Healthy; Margin Hit By Higher Ad Spends: Motilal Oswal
A Procter & Gamble Co. Gillette brand razor (Photographer: Daniel Acker/Bloomberg) 

P&G Hygiene - Topline Momentum Healthy; Margin Hit By Higher Ad Spends: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

P&G Hygiene and Healthcare Ltd. ended FY21 (June year-end company) with 19.1% sales growth – this is the second year in the preceding three years that it has reported topline growth of over 19%.

Thus, after losing momentum in the three years between FY16 and FY18, after the chief executive officer change, the company seems to be back at the 19–20% topline compounded annual growth rate trajectory seen over FY08–15.

For a non-discretionary company, this is very strong topline momentum. With only ~20% penetration in feminine hygiene products (~67% of P&G Hygiene FY20 sales), coupled with dominant market leadership and considerable moats, the growth opportunity remains immense.

Click on the attachment to read the full report:

Motilal Oswal P&G Hygine Aug 26.pdf

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