MOSL: GSK CONSUMER (Neutral)-Revenues in line-RM inflation to keep margins under check
GSK Consumer: Revenues in line; RM inflation to keep margins under check
(SKB IN, Mkt Cap USD5.3b, CMP INR8963, TP INR9161, 2% Upside, Neutral)
2QFY20 sales were up 5.7% YoY to INR13.5b (in-line). On calculated basis, overall HFD volume growth was 3.6% YoY. EBITDA grew 11.9% YoY to INR4b (v/s est. INR3.7b); PBT grew 5.7% YoY to INR4.5b (in-line) and adj. PAT grew 23% YoY to INR3.5b (v/s est. INR3b).
- Value market share (L3M Sep'19) for Horlicks stood at 43.7% (up 40bp YoY but down 60bp QoQ), and for Boost it was 11.4% (up 50bp YoY/20bp QoQ). Volume market share (L3M Sep'19) for Horlicks/Boost stood at 50.4%/15.2%.
- Gross margin expanded 100bp YoY to 70.7% while EBITDA margin was up 160bp YoY to 29.4% (v/s est. 26.8%).
GlaxoSmithKline Consumer Healthcare is engaged in the manufacture of health food, malted foods, health drinks, milk fluid and powders, biscuits, health care products and pharmaceutical products and powders. Co.'s flagship product, Horlicks, is scientifically developed and specifically caters to the nutritional needs of the Indian diet. It helps meet the requirements of essential nutrients in children, such as iron and vitamins that aid iron absorption. Horlicks is sold in a number of countries across the world. In addition, Co. also manufactures and markets brands such as Boost, Viva, Maltova, Biscuits, Foodles, Eno, Crocin, Iodex and Sensodyne.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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