P&G Q2 Results Review - Sales, Gross Profit Inline; Lower Ad-Spends Surprise: Motilal Oswal

BQ Prime’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 BQ Prime’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. reported an in-line performance up to the gross profit level in its Q2 FY23 results (June year-end). However, the company beat our Ebitda/ profit before tax/profit after tax estimates by 15-17%, as ad-spends were significantly lower than our expectation at 9.7% of sales (after jumping to 14.9% of sales in Q1 FY23).We are not making any material changes to our earnings per share forecasts, given the volatility in ad-spends, possible delays in gross margin recovery due to higher inventory even as pulp and oil costs are coming down, and traditionally weak single-digit margins in Q4 every year recently. Two factors make P&G an attractive long-term core holding:huge category growth potential in the feminine hygiene segment (~65% of FY22 sales), coupled with potential for market share gains aided by considerable moats that the company is fortifying, as indicated in our detailed annual report note in Nov-22; andpotential for higher margin gains from premiumisation in the feminine hygiene segment over the long term..Click on the attachment to read the full report:.Godrej Consumer Products Q3 Results Review - Indonesia Yet To Normalise: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

P&G Q2 Results Review - Sales, Gross Profit Inline; Lower Ad-Spends Surprise: Motilal Oswal

Huge category growth potential in the feminine hygiene segment.

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