Investment Idea #17

European Health and Hygiene Powerhouse

We have another FMCG name today, one with a myriad portfolio of brands in what the company calls health and hygiene with brands that are pretty well-known but both earnings performance and stock price have underperformed for years. That is perhaps going to change and hence we are discussing this name.

The company slide above tells us how it wants to change. There is clear purpose: to protect, heal and nurture the world. The company culture described above is also defined to fulfil its purpose. While we know that such corporate slogans can sometimes be just empty words, this one feels real. Well, for starters, this slide wasn’t in the materials a few years ago.

Anyways, let’s look at the financials.

Simple financials (FY2025 consensus GBP)

• Sales: 16.2bn

• EBITDA: 4.6bn, EBIT: 4.0bn

• Net income: 2.8bn, FCF: 2.5bn

• Debt: 7bn, Mkt Cap 41bn

Ratios

• ROE 24%, ROIC 12%

• EV/EBITDA 12.1x (Dec 24), PER 16.6x (Dec 24)

• Past margins: OPM 25-45%

• FCF yield 6.1% (consistently at mid single digit)