Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Glaxo Smithkline Consumer Healthcare
Volume growth trends - Volume growth has slowed down this year vs. 9% volume
growth CAGR over last 3-4 years. Management also highlighted that higher inflation
has been hurting volume growth in Urban India.
Growing focus on North and West India and Rural India – GSK currently earns
15% of its revenues from North and Western part of India. Management expects it to
reach 20%-25% of overall revenues over next 3 years. Company is expanding its
rural reach and has introduced low price SKUs to enhance affordability for its
products and increase penetration in rural regions.
New product performance - Company has been adding new products to its
portfolio. Value added premium variants of Horlicks brand have witnessed faster
growth. Its noodles launch Foodles differentiates itself on its nutritional value
proposition and has 2-3% share. Biscuit portfolio is witnessing healthy growth rates
supported by introduction of premium value added variants. GSK Consumer is now
entering breakfast cereal market with launch of Horlicks Oats.
Margin outlook - Management highlighted that any new product launch will not be
necessarily margin dilutive. Mgmt stated that healthy margin profile will be a key
priority for the company and they expect A&P/Sales ratio to be ~16-17% near term.
Inflation in milk prices and barley is a concern.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Glaxo Smithkline Consumer Healthcare
Volume growth trends - Volume growth has slowed down this year vs. 9% volume
growth CAGR over last 3-4 years. Management also highlighted that higher inflation
has been hurting volume growth in Urban India.
Growing focus on North and West India and Rural India – GSK currently earns
15% of its revenues from North and Western part of India. Management expects it to
reach 20%-25% of overall revenues over next 3 years. Company is expanding its
rural reach and has introduced low price SKUs to enhance affordability for its
products and increase penetration in rural regions.
New product performance - Company has been adding new products to its
portfolio. Value added premium variants of Horlicks brand have witnessed faster
growth. Its noodles launch Foodles differentiates itself on its nutritional value
proposition and has 2-3% share. Biscuit portfolio is witnessing healthy growth rates
supported by introduction of premium value added variants. GSK Consumer is now
entering breakfast cereal market with launch of Horlicks Oats.
Margin outlook - Management highlighted that any new product launch will not be
necessarily margin dilutive. Mgmt stated that healthy margin profile will be a key
priority for the company and they expect A&P/Sales ratio to be ~16-17% near term.
Inflation in milk prices and barley is a concern.
No comments:
Post a Comment