... Company Overview Colgate Palmolive was incorporated 1806 in New York City by soap and candle maker William Colgate. Colgate now is a leading multinational firm, operating in 200 countries and territories, within the personal, oral & home care and pet nutrition industry. It is headquartered in Midtown Manhattan and it employs 38,600 people. Colgate is traded in the New York Stock Exchange with “CL” as its ticker symbol and is a component of the S&P500 index. The stock is currently trading at $108.00 as of close at November 23 and has a market capitalization of $51 billion. The company has a solid history for stable earnings and dividends and is run by a responsible management. The company’s fiscal year ends in December. Colgate’s primary competitor on the scale of the global market is Procter & Gamble. Colgate is most famous for Colgate dental products, Palmolive shampoos, Irish Spring soap and Speed Stick deodorant. They also sell pet products under their “Hill’s” brand. Key Information Colgate-Palmolive Co http://www.colgatepalmolive.com 300 Park Avenue NEW YORK NY 10022 United States Industry Overview The Soap and Other Detergents industry is the main industry Colgate Palmolive is classified in. The industry includes the production, distribution and selling of soaps, detergents, toiletries, perfumes and cosmetics. The industry in the US is composed of 229 companies and is leaded by Procter and Gamble and followed by Colgate Palmolive. Industry...
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...000 employees domestic and foreign. Their customers include mass merchandisers, grocery stores, member club stores, drug stores, department stores, salons, distributors, e-commerce and high frequency stores. Income Statement Analysis ($ in million) The 2015 net sales were negatively impacted by approximately $4.8 billion of unfavorable foreign exchange fluctuation compared to 2014. Net earnings attributable to Procter & Gamble in 2015 were negatively impacted by approximately $1.4 billion due to foreign exchange, $2.1 billion of non-cash impairment charges related to the Batteries business reported in discontinued operations and a $2.1 billion Venezuelan deconsolidation charge. The Vertical analysis shows that the gross profit represented 49% of sales and cost of goods sold rounded at 51% of sales for 2015 compare to 2014 that represent 49.1% and 50.9% respectively. Total SG&A decreased 5% to $23.6 billion, as reduced overhead and marketing spending was partially offset by increased foreign exchange transaction charges (SEC 10K Report, 2015). SG&A as a percentage of net sales increased to 30.9%, as the negative scale effects of lower net sales and inflationary impacts were partially offset by cost savings efforts. The Horizontal analysis reveals that a decrease of $4,321 of sales were reported in 2015 compared to 2014. Cost of Goods Sold decreased by $2,134 in 2015 as well...
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...Financial Analysis of the Consumer Products Industry The consumer products industry produces and creates products that nearly everybody uses on a daily basis. Toilet paper, toothpaste, diapers, tissues, cosmetics, small appliances, and detergents are just a small sample of what this industry provides. With such a vast array of product offerings, which are essential to modern day living, there is no threat of this industry becoming obsolete. In fact, as emerging markets continue to prosper and new consumers enter the market, there are many growth opportunities available to the industry. In this analysis Proctor and Gamble, the largest competitor in the industry, will be compared Unilever, Colgate-Palmolive, and Kimberly Clark. The goal of this analysis is to figure out which factors drive success in the industry, then use ratios and trends to determine which company is currently performing the best financially. Based on the results, the conclusion should highlight which company will outperform its competition in the future. Factors that Drive Success in the Industry In developed markets, the cost of living is on the rise. Gas prices are higher than ever, and unemployment rates are also high. All this financial pressure translates to consumers wanting more for their money. Companies who can offer products that are both valuable to the consumers and priced well will outperform the competition. The consumer products industry is a concentrated, meaning that the industry...
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...Procter & Gamble Equity Valuation & Analysis As of November 1, 2007 Raider Investments Group Brian Hooper Tyler Yenzer Nathan Yosten Dustin Bradford Brian.D.Hooper@ttu.edu Phillip.T.Yenzer@ttu.edu Nathan.Yosten@ttu.edu Dustin.Bradford@ttu.edu Table of Contents Executive Summary Business & Industry Analysis Company Overview Industry Overview Five Forces Model Rivalry Among Existing Firms Threat of New Entrants Threat of Substitute Products Bargaining Power of Buyers Bargaining Power of Suppliers Key Success Factors Firm Competitive Advantage Analysis Future Competitive Analysis Accounting Analysis Key Accounting Policies Potential Accounting Flexibility Actual Accounting Strategy Quality of Disclosure Qualitative Analysis of Disclosure 36 31 33 35 10 11 13 13 18 20 22 24 24 28 30 5 2 Quantitative Analysis of Disclosure Sales Manipulation Diagnostics Expense Manipulation Diagnostics Potential “Red Flags” Undo Accounting Distortions Financial Analysis Liquidity Analysis Profitability Analysis Capital Structure Analysis IGR/SGR Analysis Financial Statement Forecasting Cost of Equity Estimation Valuation Analysis Multiples Valuation Discounted Free Cash Flow Model Discounted Dividends Model Residual Income Model Long-Run Return on Equity Residual Income Model Abnormal Earnings Growth Model Credit Analysis 40 41 44 49 49 50 63 72 76 79 83 86 95 96 98 100 103 106 3 Analyst Recommendation Appendix Regression Analysis Income Statement Balance Sheet Statement...
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...Real World Applied Learning Project: Personal Products (PG) A Basic View of Fundamental of Stock Market Fundamental Analysis: 1. Discuss the impact of the general level of economic activity (Observe the performance of the 10 leading indicators for the past 6 months. Compare this with changes in stock prices and interest rates http://www.conference-board.org/pdf_free/press/TechnicalPDF_4457_1334824007.pdf Comments: from September 2011 to Mar 2012, the US leading index has slightly increased from 93.2 to 95.7. In the same period, the Lagging index has been similarly increasing from 112.1 to 114.4. The increasing leading index shows that our economy is growing slowly but should continue with a positive economic outlook. The Lagging Index is growing too and could indicate things aren’t going well. Although with some research it is shown that unemployment is down. The reason for the slow growth in the lagging index is from commercial and industrial loans outstanding have increased. It shows the U.S. economy is growing slowly and should continue that way for the next several months. Comments: From September 2011 to March 2012, you see an increase in several major leading indicators. The average weekly claims of state unemployment insurance have vastly declined from 408.3K to 364.4K. This shows that the economy is improving with more employment available. New orders for consumer goods have increased steadily in this time period from 116,882 to 121,511. Demand...
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...AN EMPIRICAL STUDY OF FINANCIAL STATEMENTS OF FMCG INDUSTRY SUBMITTED TO: MS.MANPREET KAUR ASSISTANT PROFESSOR LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT SUBMITTED BY: GROUP NO 1, PGDM (FINANCE)-D POULOMI KUNDU (205) NIHARIKA MEHTA (218) GAZAL TREHAN (220) TIYASA SARKAR (237) PRERNA CHOUDHARY (246) SHWETA GOYAL (248) Abstract In this paper, an attempt has been made to examine the financial performance of six leading FMCG companies in India – Britannia Industries, Dabur India, ITC Ltd, Nestle India Ltd, Marico Ltd, and Colgate Palmolive ltd over a period of five years (2009 to 2014). FMCG sector in India has been experiencing a phenomenal pace of growth since last decade, thanks to increasing consumer incomes and rapidly changing consumer tastes and preferences. Large scale and low cost production, modern retailing strategies, branding and maintenance of intense distribution network have given FMCGs an edge over others in raising hovering revenues. In this study we have used ratio analysis and have applied tools of descriptive statistics to compare the financial positions of these companies. We have also studied the basic differences in the accounting policies that are adopted by these companies in the respect of revenue recognition, depreciation and inventory valuation. Objectives of the study Keeping in view the importance of FMCGs in India’s economic and social development, the study generally aims at evaluating the financial performance of the six leading FMCG companies...
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...Procter and Gamble- 2006 | Written Case Analysis | Contents Executive Summary 3 Facts about Procter and Gamble: 4 Financial Ratio Analysis: 5 Profitability Ratios: 5 Liquidity Ratios 5 Disadvantages of acquiring Gillette: 6 Employees Layoff: 6 Divergence of P & G from its functioning Efforts: 6 Competitor Threats 6 Supporting of the Acquisition 7 Strong Brand Portfolio, opportunity for more innovation, faster sales growth and cost saving: 7 More Bargaining Power: 8 Boy Meets a Girl! 8 Over all Recommendations for P & G 9 Should Penetrate in the Indian Market 9 P&G should diversify 9 Conclusion 10 Recommendations over Organizational chart 11 Executive Summary With more than 100,000 employees and nearly 5 billion customers, Procter and Gamble (26 among 500 fortune companies is considered as number one US and Global manufacturer of household products, with $56.7 billion revenues by the end of 2005. Procter and Gamble was established back in 1837, a company holds immense financials with very strong and un-orthodox management structure. Company operated with more than 300 products in 160 countries. The main segment of Procter and Gamble includes the Beauty care which further includes personal and beauty products, the fabric and home care segment which mainly consisted of fabric care and laundry products, the health care segment which encompasses the oral care and prescription drugs and the baby family care segment which further...
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...Industry Valuation Analysis The Procter & Gamble Company and Unilever Group 5 Date: 03/18/2016 Project #: FINC 5300-WINTER 2016 Prepared for: Joan Miao Prepared by: Zhang, Leizi; Zhang, Lingfei; Zhu, Senglin; Zhang, Suyuan Date: 03/18/2016 Project #: FINC 5300-WINTER 2016 Prepared for: Joan Miao Prepared by: Zhang, Leizi; Zhang, Lingfei; Zhu, Senglin; Zhang, Suyuan STRATEGY ANALYSIS Macroeconomic Environment Overview U.S. growth has been recovering since the end of 2014, powered by private consumption. The labor market has been improving as well. The Eurozone is recovering on the heels of increases in private consumption and exports and growth is continuing to expand mildly. Growth in the emerging markets has been decelerating relative to the past in view of China’s structural slowdown, declining commodity prices, a downturn in foreign investment and the need to base growth on domestic demand. The developed countries’ monetary policies are likely to change direction gradually. In our judgment, the Fed will begin liftoff at a moderate pace, bringing its rate to about 1.0% by the end of 2016. Eurozone interest is unlikely to change in 2015 and 2016. Roughly Two thirds of The Procter & Gamble Company (P&G)’s revenue is from outside the United States. In fiscal 2015, net sales of all five-business segments were negatively affected by foreign currency fluctuations due to strong dollar, boosted by recovery of U.S. economy (See the...
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...EIC ANALYSIS - ITC Submitted By Nisha ECONOMY India GDP growth rate 2012 was 5%, 2013 is 5.8% and it is expected to grow at 6.5% in 2013 Inflation :WPI-7.6% and CPI-10% Gross fiscal deficit 5.1 Revenue Deficit-3.5 Third largest economy in terms of Purchasing Power Parity Sector wise Contribution to GDP I) Agriculture 17% II) Industry 18% III) Services 65% FMCG INDUSTRY Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Category: Household Goods, Personal Care, Drivers of Growth In FDI in India Govt pro industry Policies Increase in Per Capita Rise of RuralIncome of Consumers rural and urban consumers FDI Support Food and Beverages and Healthcare. Items in this category include all consumables that customers buy at regular interval The FMCG’s promising market includes Cumulative FDI inflows middle class and the rural segments of the (USDmillion) as in 2012 1500 Indian population. Rapid growth with well-established 1000 500 distribution networks and intense 0 competition between the organized and unorganized segments High money circulated in the Economy due to FMCG Major Players: HUL, P&G, ITC ,Dabur , Colgate Palmolive etc FMCG INDUSTRY (TRENDS) FMCG sector in India is the fourth largest sector in the economy FMCG Revenue in USD billion 40 30 India has become a key targeted country, with average growth in the FMCG industry of 35...
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...matrix Rating Target Target Period Potential Upside : : : : Hold | 1672 12 months 2% Colgate-Palmolive India (COLPAL) Volumes slow but dominance prevails!!! | 1632 What’s changed? Target EPS FY15E EPS FY16E Rating Unchanged Changed from |41.6 to |41.7 Changed from |47.8 to |47.9 Unchanged Quarterly performance Sales EBITDA EBITDA (%) PAT Q1FY15 950.6 193.7 20.2 134.9 Q1FY14 YoY (%) 844.6 12.6 165.3 17.2 19.2 101 bps 185.2 -27.2 Q4FY14 QoQ (%) 920.6 3.3 201.9 -4.1 21.8 -153 bps 132.3 2.0 Key financials | Crore Net Sales EBITDA PAT EPS (|) FY13 3,084.1 656.8 496.8 36.5 FY14 3,544.9 664.0 539.9 39.7 FY15E 4,122.9 805.7 567.7 41.7 FY16E 4,740.8 945.2 650.7 47.9 Valuation summary P/E Target P/E Div. Yield Mcap/Sales RoNW (%) RoCE (%) FY13 44.7 45.8 1.7 7.2 101.5 125.2 FY14 45.1 42.1 1.7 6.3 90.0 102.2 FY15E 39.1 40.1 2.0 5.4 79.0 102.6 FY16E 34.1 34.9 2.2 4.7 74.0 98.8 Stock data Particular Market Capitalization (| Crore) Total Debt (FY14) (| Crore) Cash and Investments (FY14) (| Crore) EV (| Crore) 52 week H/L Equity capital Face value Amount 22,194.1 0.0 287.0 21,907.1 1699 / 1190 | 13.6 Crore |1 Price performance Colgate Dabur HUL Gillette 1M 8.9 4.6 4.1 6.9 3M 12.8 9.3 7.8 19.5 6M 25.8 19.1 13.5 6.7 12M 11.5 11.4 -9.4 1.0 Analyst Sanjay Manyal sanjay.manyal@icicisecurities.com Parineeta Rajgarhia parineeta.rajgarhia@icicisecurities.com • Colgate Palmolive reported slightly lower-than-expected revenue growth at 12.6% to | 950.6 crore...
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...the industry, its target market and positioning and the use of different marketing mix and approach. We will discuss the new product “Refresh”. “Refresh” is a spray which can be used for shower instead of using traditional form of soap. It is easy and convenient to use. In the liquid soaps industry, its grocery value in 2002 is 48.2 millions. There is an increase of 10.9 percent of sales for liquid soups by comparing to previous year (2001). The sale of soap is growing every year. We can predict that the annual sales of soap will continue to grow in the future. There is quite a lot of competitor in this industry. We will focus on 4 major competitors. They are Unilever, Colgate-Palmolive, PZ Cussons and Reckitt-Benckiser. We will also discuss the current status in the marketing, and analysis how different marketing environment will affect the sales. Not only analyzing the current condition, we will recommend different marketing approach that suit for Luke Bishop re-evaluating its market. For example, select dependent middle class and outgoing travelers as target buyers. We aims to position “Refresh” as a product that provide “Refresh and Relax” to customers. By introducing “Refresh” to the market, this is the time for the...
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...BUS 591(Financial Accounting & Analysis) Entire Class IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://acehomework.com/BUS-591-Financial-Accounting-Analysis-Complete-Class-A-WORK-878676.htm If You Face Any Problem E- Mail Us At JohnMate1122@gmail.com Week 1 Homework Problems. Complete the following Workbook Template Week One or you may complete the Problem 1-3B on page 36, 1-4B on page 37 (Chapter 1) and Problem 2-7B on page 90 (Chapter 2) of your text. Submit your work to your instructor by the posted due date. Show all your work in order to earn full credit Week 1 DQ1 Generally Accepted Accounting Principles (G.A.A.P.). Briefly discuss Generally Accepted Accounting Principles or G.A.A.P. What are they? What is their purpose? Name the U.S. and international standard-setting bodies that established these principles. Are all companies required to follow these principles? Why or why not? Your answer should illustrate understanding of generally accepted accounting principles and their international counterpart. Respond to at least two of your classmates’ posts. Week 1 DQ2 Annual Reports. Visit the website for Tootsie Roll (www.tootsie.com). Click on “Company Information” then “Financial Information”. Open the latest annual report and review it to find the answers to the following questions: § What are Tootsie Roll’s corporate principles? Do you agree with these principles, or do you feel there are additional...
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...BUS 591(Financial Accounting & Analysis) Entire Class IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://acehomework.com/BUS-591-Financial-Accounting-Analysis-Complete-Class-A-WORK-878676.htm If You Face Any Problem E- Mail Us At JohnMate1122@gmail.com Week 1 Homework Problems. Complete the following Workbook Template Week One or you may complete the Problem 1-3B on page 36, 1-4B on page 37 (Chapter 1) and Problem 2-7B on page 90 (Chapter 2) of your text. Submit your work to your instructor by the posted due date. Show all your work in order to earn full credit Week 1 DQ1 Generally Accepted Accounting Principles (G.A.A.P.). Briefly discuss Generally Accepted Accounting Principles or G.A.A.P. What are they? What is their purpose? Name the U.S. and international standard-setting bodies that established these principles. Are all companies required to follow these principles? Why or why not? Your answer should illustrate understanding of generally accepted accounting principles and their international counterpart. Respond to at least two of your classmates’ posts. Week 1 DQ2 Annual Reports. Visit the website for Tootsie Roll (www.tootsie.com). Click on “Company Information” then “Financial Information”. Open the latest annual report and review it to find the answers to the following questions: § What are Tootsie Roll’s corporate principles? Do you agree with these principles, or do you feel there are additional...
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...BUS 591(Financial Accounting & Analysis) Entire Class IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://acehomework.com/BUS-591-Financial-Accounting-Analysis-Complete-Class-A-WORK-878676.htm If You Face Any Problem E- Mail Us At JohnMate1122@gmail.com Week 1 Homework Problems. Complete the following Workbook Template Week One or you may complete the Problem 1-3B on page 36, 1-4B on page 37 (Chapter 1) and Problem 2-7B on page 90 (Chapter 2) of your text. Submit your work to your instructor by the posted due date. Show all your work in order to earn full credit Week 1 DQ1 Generally Accepted Accounting Principles (G.A.A.P.). Briefly discuss Generally Accepted Accounting Principles or G.A.A.P. What are they? What is their purpose? Name the U.S. and international standard-setting bodies that established these principles. Are all companies required to follow these principles? Why or why not? Your answer should illustrate understanding of generally accepted accounting principles and their international counterpart. Respond to at least two of your classmates’ posts. Week 1 DQ2 Annual Reports. Visit the website for Tootsie Roll (www.tootsie.com). Click on “Company Information” then “Financial Information”. Open the latest annual report and review it to find the answers to the following questions: § What are Tootsie Roll’s corporate principles? Do you agree with these principles, or do you feel there are additional...
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...BUS 591(Financial Accounting & Analysis) Complete Course IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://hwnerd.com/BUS-591-Financial-Accounting-Analysis-Complete-Course-1423.htm?categoryId=-1 If You Face Any Problem E- Mail Us At Contact.Hwnerd@Gmail.Com Week 1 Homework Problems. Complete the following Workbook Template Week One or you may complete the Problem 1-3B on page 36, 1-4B on page 37 (Chapter 1) and Problem 2-7B on page 90 (Chapter 2) of your text. Submit your work to your instructor by the posted due date. Show all your work in order to earn full credit Week 1 DQ1 Generally Accepted Accounting Principles (G.A.A.P.). Briefly discuss Generally Accepted Accounting Principles or G.A.A.P. What are they? What is their purpose? Name the U.S. and international standard-setting bodies that established these principles. Are all companies required to follow these principles? Why or why not? Your answer should illustrate understanding of generally accepted accounting principles and their international counterpart. Respond to at least two of your classmates’ posts. Week 1 DQ2 Annual Reports. Visit the website for Tootsie Roll (www.tootsie.com). Click on “Company Information” then “Financial Information”. Open the latest annual report and review it to find the answers to the following questions: § What are Tootsie Roll’s corporate principles? Do you agree with these principles, or do you feel there are additional...
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