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