ADVERTISEMENT

P&G Q1 Review - Sales Disappoint; Margin Surprise Lead To Profit Beat: Motilal Oswal

P&G Q1 Review - Sales Disappoint; Margin Surprise Lead To Profit Beat: Motilal Oswal

Procter & Gamble Co. Head & Shoulders brand shampoo is arranged for a photograph.  (Photographer: Daniel Acker/Bloomberg)
Procter & Gamble Co. Head & Shoulders brand shampoo is arranged for a photograph.  (Photographer: Daniel Acker/Bloomberg)

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

Procter and Gamble Hygiene and Health Care Ltd.’s sales growth of ~5% was lower than our expectation, albeit on a base of 18.5% growth.

While the company does not share segment-wise numbers in its interim results, it is likely that high healthcare segment sales growth in the base quarter may have led to modest sales growth in Q1 FY22 (June year-end company).

The Healthcare segment had grown by ~24% in FY21, partly aided by the Covid-19 wave, leading to strong sales growth for all healthcare products.

Ebitda margin, at 28.5%, was well ahead of our expectation of 23.9%, leading to an Ebitda/profit after tax beat versus our expectations.

P&G's medium term topline and earnings growth prospects remain best of breed.

Click on the attachment to read the full report:

Motilal Oswal P&G-Q1FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.