Abbott India Q2 Results Review - Major Brands Continue To Drive Growth: Centrum Broking
Growth was driven by strong traction in major brands i.e Udiliv, Thyronorm, Duphalac, Vertin and Cremaffin Plus.
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.
Centrum Broking Report
Abbott India Ltd.'s Q2 FY23 sales grew by 13% YoY and 6% QoQ to Rs 13.8 billion (in-line with our expectation). Growth was driven by strong traction in major brands i.e Udiliv, Thyronorm, Duphalac, Vertin and Cremaffin Plus.
A better product mix offset raw material cost pressures. Gross margin contracted 108 bps YoY and 53 bps QoQ to 45.5%. However, decline in promotional and other overhead cost led to Ebitda margin expansion of 364 bps YoY and 416 bps QoQ at 25%.
Absolute Ebitda grew 32% YoY and 27% QoQ to Rs 3.4 billion. Profit after tax for the quarter grew by 38% YoY and 29% QoQ to Rs 2.7 billion. As of now new products account for ~3% growth, which indicates its ability to introduce promising products ahead.
Having strong set of brands, with highest medical representative productivity among Abbott India's domestic peers, and its ability to grow ahead of the market, backed by price increases and traction in new launches.
Cash on books also may be utilized for merger and acquisition in consumer health and vaccine brands.
Click on the attachment to read the full report:
This 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.