Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Investor Presentation (May 2024)
120 slides from Godrej Consumer Products's investor presentation, May 7, 2024
Slide 1: Investors and Analysts meet presentation cover letter
Godrej Consumer Products Ltd. Regd. Office: Godrej One, 4th Floor, Pirojshanagar, Eastern Express Highway, Vikhroli (E), Mumbai - 400 079, India. Tel : +91-22-2518 8010/8020/8030 Fax : +91-22-2518 8040 Website : www.godrejcp.com CIN : L24246MH2000PLC129806 May 7, 2024 BSE Limited Corporate Relations
Slide 2: Investor Meet
INVESTOR MEET A
Slide 3: Disclaimer
Disclaimer Some of the statements in this communication may be forward looking within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Company’s operations include changes in the in
Slide 4: Presenters
• 1 • Nisaba Sudhir Rajesh Aasif Venkateswara Godrej Sitapati Sethuraman Malbari Yadlapalli Executive MD & CEO Business Head, CFO R&D Head Chairperson ASEAN 4
Slide 5: Welcome note
Welcome note Nisaba Godrej
Slide 6: Godrej family settlement
11:11 ••• Harsh Goenka ••• @hvgoenka The Godrej family settlement was 'locked' today with the elegance and dignity that the family is known for. No controversies, just all clean like their soaps. Good Knight! 9:21pm· 30 Apr 2024 · 135K Views 119 Reposts 12 Quotes 1,923 Likes 6 50 Bookmarks
Slide 7: Books by Sitapati
Vinay Sitapati Sudhir Sitapati 1,215 Pages 272 Pages si1MAI @ LION the ·� REMADE DIA BIOGRAPHY OF PV �ARASIMHA ll;:j 7
Slide 8: ~air sit+PA"
~air sit+PA" 8
Slide 9: Drop dead: Combating the world's most dangerous animal
Drop dead: Combating the world’s most dangerous animal Market Share RNF Molecule change + Machine 57% 58% 55% • 53% ---- •---· 46% • •36% ice 35% 32% 30% 2008 2012 2016 2019 2023 9
Slide 10: Show me the money! (Getting west of India right)
Show me the money! (Getting west of India right) FY 24 ~ = 10% EBITDA FY 26 >15% EBITDA East Africa USA Nigeria Chile / 10
Slide 11: 2040: The Power of Backcasting
2040: The Power of Backcasting Organic 11:11 at e Pirojsha Go ... br t mhit You fa.b Sudhir will email you his GCPL f= @2040 presentation and ask for some time to discuss Inorganic Thanks, look forward to it, though not sure what I think of making a 17 year forward plan 4:53PM Vo6£ 11
Slide 12: The Creative Company
The Creative Company • • ' . •• LIGHT . • t" ' f• x B air sr~pro��:iTJVE •' % - . GCPL \ " \ -- i €4 I' u .. - he ' ' -· .. - Al I- t j ad h • - . 12 \
Slide 13: The Codebooks of Growth: Category Development
The Codebooks of Growth: Category Development AER 13
Slide 14: The Codebooks of Growth: Van Distribution
The Codebooks of Growth: Van Distribution • ' • OL U 'EC ·· - 15.03Cr 27.71K 14
Slide 15: The Green Discount
The Green Discount gy , rm'40 magic 6%oic AeNt MAKES 500ml """a 15
Slide 16: The Godrej Way
The Godrej Way True Self vs 50% Board representation; 11:11 50% Direct employment. Values Best Self Back Good experience with Go... V Dear Pirojsha, Hope you and the family are doing very well l wanted to write you a note to let you know ot my appreciation for Godrej Properties as a flat owner in Go
Slide 17: Nisaba Godrej note on the book
What a fun ride it's been having a ring side view to Sudhir, Aasif and the incredible GCPL team being wildly successful. There are lots of lessons on entrepreneurship and execution in this book. But the reason I love this team (and why you should read this book) is for their deep values and integrit
Slide 18: Turbocharging Volume Growth
Turbocharging Volume Growth Sudhir Sitapati
Slide 19: First a quick look at Q4 FY24
First a quick look at Q4 FY24 Consolidated volume grew 12% (9% organic), sales grew 6%, EBITDA grew 18% and PAT (after exceptional and one-off items) 22% India business continues its strong trend despite poor Household Insecticide season with 15% volume growth (7% organic) Incense stick launch shows
Slide 20: GCPL FY23 and FY24
GCPL FY23 and FY24 I have promises to keep… from Investor Meet to Investor Meet
Slide 21: GCPL circa 2021
GCPL circa’ 2021 Share Price FY11-16 FY17-21 - GCPL Volume Growth ~15% ~5% Sales Growth 20% 3% EBITDA Growth 22% 6% Apr July Oct Jan Apr July Oct Jan Apr July Oct Jan Apr July Oct Jan Apr Operating cashflow 17 17 17 18 18 18 18 19 19 19 19 20 20 20 20 21 21 NA 1.5% growth Flattish share price… …driv
Slide 22: Promises made – December 2021
Promises made – December 2021 An Operating Philosophy ,Less is more; Much less is much more 2.Consumer first, Business second A simple strategy for the next 3-5 years 3.Think local, Act global 4, Tomorrow before Today Double-digit Volume Growth Led through category development Funded by radical simp
Slide 23: Promises made – May 2023
Promises made – May 2023 Organic business RCCL business Aim to deliver sustainable volume-led profitable growth Business case Quality of profits FY23 FY24 FY25onwards @ margins High single-digit UVG NR 622 er lo doule li@is t¢ Mid-teens grnth f xpect reverue sf BI1D) G Investments EBITDA margin High
Slide 24: Promises made: What and How
Promises made What How High single digit UVG in FY24* Lead through Category Development High teens EBITDA growth in FY24* Funded through Simplification Revenue and EBITDA of RCCL business in Underpinned by the Operating Philosophy FY24 to be similar to FY23 Double digit UVG in medium term *Organic b
Slide 25: Promises delivered on – What
Promises delivered on – What High single digit UVG in FY24* High teens EBITDA growth in FY24* Revenue and EBITDA of RCCL business in FY24 to be similar to FY23 Double digit UVG in medium term On track *Organic business 25
Slide 26: Promises delivered on – How | Our Goodness Manifesto
Promises delivered on – How | Our Goodness Manifesto OUR OUR BE delight! PURPOSE Bringing the goodness of health and beauty to VALUES consumers in emerging markets OUR • - STRATEGY Lead through category Funded by development simplification - D •• OUR OPERATING 1 Less is more; Much 2 Consumer first,
Slide 27: Our Goodness Manifesto shows us the path
Our Goodness Manifesto shows us the path OUR OUR PURPOSE Bringing the goodness of health and beauty to VALUES consumers in emerging markets OUR STRATEGY Lead through category Funded by development simplification OUR OPERATING 1 Less is more; Much 2 Consumer first, 3 Think local, 4 Tomorrow 5 People
Slide 28: Goodness of health and beauty
Goodness of health and beauty New innovations Increasing our TAM* Global reach • Serving consumers e in more than bri whit color Agar' tti ,, V0\6E . z. Lu; �: x- �: <t 0 042(Yg% "tr longlast 80 countries *TAM - Total Addressable Market 28
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Slide 30: Our Goodness Manifesto shows us the path
Our Goodness Manifesto shows us the path OUR OUR BE delight! PURPOSE Bringing the goodness of health and beauty to VALUES consumers in emerging markets OUR STRATEGY Lead through category Funded by I development simplification OUR OPERATING 1 Less is more; Much 2 Consumer first, 3 Think local, 4 Tomo
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Slide 32: Our Goodness Manifesto shows us the path
Our Goodness Manifesto shows us the path OUR OUR PURPOSE Bringing the goodness of health and beauty to VALUES consumers in emerging markets OUR STRATEGY Lead through category Funded by development simplification OUR OPERATING 1 Less is more; Much 2 Consumer first, 3 Think local, 4 Tomorrow 5 People
Slide 33: Category Development: Our 4-fold model
Category Development Our 4-fold model Relevance Access Lead through category development Availability Trials 33
Slide 34: Relevance: Consistent multi-year growth and category development
Relevance: Consistent multi-year growth and category development AER DARLING OMB Salon fresh braids, no mabber whab! ••• Tangle fro 6» Superior ocluing 2 YR UVG CAGR Penetration Delta 2 YR UVG CAGR Penetration Delta Darling Aer ~130 ~240 bps ~110 ~220 bps in RSA 34
Slide 35: Access: Success stories in Indonesia and India
Access: Success stories in Indonesia and India HIT - Indonesia Crème Hair Colour - India rich • rich • « rich • ;: creme.... ... , creme,. .. creme l . . ·• "· 04%%, ' ,4%. ,, .. .+ . . ·-·• +10x ' .... ,w, 4 " ... •· .. � 4 +10x ' ... ,w, ' el ' 150 ML | IDR 12,000 ~500 48% HIT Aerosol Penetration
Slide 36: Availability: VISTAAR 2.0, one of the largest outreach programmes in India
Availability: VISTAAR 2.0, one of the largest outreach programmes in India
Slide 37: Trial: Significant expansion in door to door sampling
Trial: Significant expansion in door to door sampling India Indonesia i 20 0kt 2023 · a 359 o.so • Jalan Meara sa} • • Kecamatan Penjaringan Jakarta Ulara D%%~#{#usus Ibukota Jakarta f" Altitude:42.4m ~10 million households reached ~1 million households reached 37
Slide 38: Simplification: Our key levers
Simplification Our 4 key levers DJ • Fewer SKUs Fewer People I Funded by simplification Fewer Simpler Operations Processes 38
Slide 39: Fewer SKUs and fewer people
Fewer SKUs and fewer people Reduced SKUs* Reduced managers* x x 0.9x 0.7x FY22 FY24 FY22 FY24 *Organic 39
Slide 40: Fewer operations: GAUM reorganisation
Fewer operations: GAUM reorganisation Actions GAUM FY21 FY22 FY23 FY24* (INR Cr.) East Africa exit Net Sales 2,499 3,050 3,415 3,181 West Africa simplification Manufacturing footprint EBIT 107 106 137 243 reassessment GAUM impairment ROCE 2% 2% 2% 6% Plan to reach double digit ROCE in the next 2-3 y
Slide 41: Simpler processes: In-housing of Creative and Design
Simpler processes: In-housing of Creative and Design Before After Multiple categories Global categories Multiple briefs Single brief Multiple agencies Single agency Multiple executions Single advertisement with multiple executions Savings on media of ~40 bps 41
Slide 42: GCPL Creative Studio
GCPL CREATIVE STUDIO 42
Slide 43: Our Goodness Manifesto shows us the path
Our Goodness Manifesto shows us the path OUR OUR PURPOSE Bringing the goodness of health and beauty to VALUES consumers in emerging markets OUR STRATEGY Lead through category Funded by development simplification OUR OPERATING 1 Less is more; Much 2 Consumer first, 3 Think local, 4 Tomorrow 5 People
Slide 44: Our operating philosophy
Our operating philosophy Less is more, Much less in much more Consumer First, Business Second FY24 FY26 � - .. ••• aa ii. � � 4## - •• e 4x HIGHER EFFICACY WINNING FRAGRANCE #st - •• dee BLIND PRODUCT WIN Reduce manufacturing footprint by ~40% Higher efficacy at same price Tomorrow before today Peop
Slide 45: Think local, act global
Think local, act global jyi' shampoo • ( India Bangladesh Nigeria Latin America Indonesia 45
Slide 46: ISSUS
ISSUS
Slide 47: Our Goodness Manifesto shows us the path
Our Goodness Manifesto shows us the path OUR OUR PURPOSE Bringing the goodness of health and beauty to VALUES consumers in emerging markets OUR STRATEGY Lead through category Funded by development simplification OUR OPERATING 1 Less is more; Much 2 Consumer first, 3 Think local, 4 Tomorrow 5 People
Slide 48: Market share gains
Market share gains Soaps Hair Colours Air Fresheners HI Electrics HIT India Indonesia • r rich • CINTHOL creme woo% j10x. "woo ) LIME el 48
Slide 49: More spends on brands, less on costs to serve
More spends on brands, less on costs to serve GCPL is now the 5th largest Higher investment funded through advertiser in the country savings in supply chain cost 2023 Rank 140 bps 5 2022 2021 Rank Rank 12 17 FY22 FY24 49
Slide 50: More automation, less working capital
More automation, less working capital Increased investments Reduction in working capital Capex (in ₹crores) Core Working Capital Days ~190 50 ~160 38 FY22 FY24 FY22 FY24 50
Slide 51: The next milestone: FY25
The next milestone: FY25 India and Indonesia Rest of the World High single Step-up digit volume profitability growth 51
Slide 52: Slide 52
Slide 53: GCPL FY25 & FY26
GCPL FY25 & FY26 I have promises to keep, but miles to go before I sleep
Slide 54: India
India Sudhir Sitapati 55
Slide 55: India's K-shaped recovery poses a challenge
India’s K-shaped recovery poses a challenge Contributing to Top >90% of savings GDP 7.5% 20% Fast growing Contributing to Consumption Middle <10% of savings 3.0% 40% Stable Contributing Agriculture Bottom negatively to savings 0.5% 40% Slow growing 56
Slide 56: Our 3-pronged strategy for FY25
Our 3-pronged strategy for FY25 Premium Premium Premium Premiumisation innovations categories channels Manufacturing Efficiency Media footprint Affordability GT rural Access 57
Slide 57: Premiumisation: Launching premium innovations
Premiumisation: Launching premium innovations Body Wash Air Fresheners Liquid Vaporiser r ,:or -t FOAM I FOAM BODY 0 WASH BODY r WASH l z -O ' 0m4Gt - LE 4 20% -E y - CINTHOL FOAM BO DY Luxurious WASH Bathing 58
Slide 58: Premiumisation: Entering into premium categories
Premiumisation: Entering into premium categories Sexual Wellness Liquid Detergents Fine Fragrances LIQUID DETERGENT e bright whites & ¢ colours e- falb - • rr in% • 59
Slide 59: Premiumisation: Scaling up across premium channels
Premiumisation: Scaling up across premium channels Growing faster Setting up • • ' LE ••• ai'2 \ 1111 II •••• 00 0 Modern E-commerce OTC Cosmetics trade channels channels Increase outlets High double-digit growth by more than 50% in FY25 60
Slide 60: Efficiency: Investing in state-of-the-art facilities
Efficiency: Investing in state-of-the-art facilities Chengalpattu, Chennai Malanpur, Madhya Pradesh ₹900 crore capex signed off, ~100 bps cost saving in 2 years 61
Slide 61: Efficiency: Effectively investing in media
Efficiency: Effectively investing in media Media investments Media CPRP* investments X (in FY23) X Reduced by Mid single (in FY23) digits 1.4x 1.4x v/s low single digit increase for the industry (in FY24) (FY23 v/s FY24) (in FY23) *Cost per rating point 62
Slide 62: Affordability: Van program to increase rural reach
Affordability: Van program to increase rural reach Pre-VISTAAR 2.0 Media Post-VISTAAR investments 2.0 X X 3x (in FY23) 1.4x Villages covered Villages covered (in FY23) 63
Slide 63: Affordability: Democratising categories by launching access packs
Affordability: Democratising categories by launching access packs 2022 2023 2024 [[[orate 64
Slide 64: Park Avenue and KamaSutra: On track with expectations
Park Avenue and KamaSutra: On track with expectations FY24 Scorecard Going ahead High Integration In record completed time FOH Synergies double-digit volume growth reduction delivered SKU From >500 EPS Neutral reduction To <150 Green Condoms by end of FY25 shoots Perfumes 65
Slide 65: Our medium term aspirations
Our medium term aspirations Volume growth EBITDA margin High Single Mid-high Digit 20s Double digit in the long term 66
Slide 66: Indonesia
Indonesia Rajesh Sethuraman 67
Slide 67: Indonesia macros fairly stable while our revenue growth inconsistent
Indonesia macros fairly stable while our revenue growth inconsistent Indonesia GDP growth Indonesia revenue growth 5.3% 5.1% 4.4% 3.4% 0.8% -8.8% Pre-COVID COVID Post-COVID Pre-COVID COVID Post-COVID GDP data from World Bank in CY; Pre Covid: 2016-2019, Covid: 2020-2021, Post Covid: 2022 68
Slide 68: Inherent strengths of business
Inherent strengths of business Portfolio Market leadership Stella I ' ,I IT'MIT 'T]MIT]IT 4.. MENNA ·- $ .04 oe it I'' s]el= EE a-La 4, smoeor mt'tu + -- baby% Large headroom for growth Categories we operate in 69
Slide 69: Inherent weakness of business pre transformation
Inherent weakness of business pre transformation Erratic pricing Under invested Weak across channels business go-to-market Media spends (% of net sales) L1ee 0on cc GCPL Branch FY17 FY18 FY19 FY20 FY21 Distributor, Retailers, Modern trade, ~4% of net sales E-commerce 70
Slide 70: Shifted from deep discounting to Every Day Low Promotion (EDLP)
Shifted from deep discounting to Every Day Low Promotion (EDLP) Price variations month on month led to EDLP has led to leakages in other channels throughput improvement HIT Aerosol large pack price across channels For HIT Aerosol large packs ~800 GT Retail bps FY24 over Minimarts FY22 and FY23 avera
Slide 71: Shifted to distributor led model in GT to increase reach
Shifted to distributor led model in GT to increase reach Moved operations from branch Improved the to distributor model distribution reach Number of outlets c r LEE cc GCPL LE 0o a GCPL 1.1x x Branch Distributor, Distributor, Retailers, Retailers, Modern trade, Modern trade, E-commerce E-commerce FY
Slide 72: Increased our media investments to optimum levels
Increased our media investments to optimum levels Then Now Media spends (% of net sales) 6% 6% 5% 4% 4% 4% 4% 3% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 73
Slide 73: Significantly reduced complexity in business
Significantly reduced complexity in business Reduced FOH Media Reduced investments SKUs X ~120 ~25% (in FY23) bps 1.4x in two years in two years (in FY23) 74
Slide 74: Post transformation, delivered stellar performance in FY24
Post transformation, delivered stellar performance in FY24… FY18-23 Particulars FY24 CAGR UVG 1% 11% Revenue growth 4% 14% EBITDA growth -1% 28% 75
Slide 75: …with strong performance in Household Insecticides and Hair Colour
…with strong performance in Household Insecticides and Hair Colour… HI revenue growth Hair Colour revenue growth 38% 24% 16% 4% FY18-23 CAGR FY24 FY18-23 CAGR FY24 76
Slide 76: …while Air Care lagged
…while Air Care lagged… Air Care 3% -3% FY18-23 CAGR FY24 77
Slide 77: …and successfully turned around HIT (1/2)
…and successfully turned around HIT (1/2) Innovation Relevance Access Trials Continue investing Launched access packs ~1 million households reached Changed ~4x more ~4x more in media formulation efficacious efficacious LV scale up ~1.5x From FY23 to FY24 Packaging IT HITrT ewe refresh 78
Slide 78: …and successfully turned around HIT (2/2)
…and successfully turned around HIT (2/2) 79
Slide 79: FY25 growth to be driven by targeted initiatives in each category
FY25 growth to be driven by targeted initiatives in each category Sustain HI Rejuvenate Air Care Scale Hair Colour 44ii444l44 Stella Mate Matuc t t 6Ts! Refit HENNA HENNA HENNA SHAMPOO SHAMPOO SHAMPOO AIR COLOUR ANRCOLOUR AIR COLOUJR 2,% -e. ig.. er4 1404 A0.A 14A AO4LA e.4,4$, 80
Slide 80: Rejuvenate Stella through innovations
Rejuvenate Stella through innovations Innovation Relevance Access 4 Stella.i Electric Electric Stella Stella % £tac tr Rf .Al •• ttctrigaf UL Stella . Stella Stella . Stella .. .. . • ' pecket et ' w ' ' (2 sh - • .. Lauder or % •• ' . . ---·-- ..•. our [ Launching Stella LV Advertising Stella Aeros
Slide 81: Scaling up Hair Colours through media and distribution investments
Scaling up Hair Colours through media and distribution investments Relevance Access Active outlets ~4x HENNA HENNA HENNA SHAMPOO SHAMPOO SHAMPOO HAIR COLOUR HAIR COLOUR HAIR COLOUR -t%1% 0eb. 1A4 AMOA . .,...., fed AA A.0A 7 31 F 0010.bl ANA AON x FY24 FY25 Advertising Shampoo Hair Colour Scaling up
Slide 82: Our medium term aspirations
Our medium term aspirations Volume growth EBITDA margin High Mid single 20s digits 83
Slide 83: Rest of the World
Rest of • I • the World Aasif Malbari 84
Slide 84: External volatility is given… and we need to accept it
External volatility is given… High interest rates Currency volatility Geopolitical volatility 24.8% USD to Naira 1,620 1,303 Nigeria Opposition Parties in Nigeria Call for Election Rerun, Citing Vote Rigging interest rate 463 lwo parties say the presidential vote in Africa's biggest democracy 1,399
Slide 85: Historical internal complexity was high… simplification is the solution
Historical internal complexity was high… High fixed overheads High SKUs High number of factories >15% >5,000 26* *in FY22, including P2P and 3P factories …simplification is the solution 86
Slide 86: Clear emphasis on improving business fundamentals on an annualised basis
Clear emphasis on improving business fundamentals on an annualised basis Volume growth INR profit growth INR cash growth 87
Slide 87: Our strategic approach
Our strategic approach Code books to Strengthen long term manage volatility business fundamentals Pricing code book Higher FMCG portfolio Optimising supply chain Improving go-to-market FOH reduction Unique approach for each country 88
Slide 88: Creating and implementing code books to manage volatility
Creating and implementing code books to manage volatility Pricing code book Optimising supply chain Reducing FOH Number of factories* 26 19 ~300 bps Taking agile FY22 FY24 FY20 v/s FY24 pricing actions EBITDA margin improvement of ~300 bps over the past 4 years *Including P2P and 3P factories 89
Slide 89: Strengthen long term business fundamentals
Strengthen long term business fundamentals Larger FMCG portfolio Increasing distribution strength across countries FMCG portfolio salience >50% 1.4x ~40% x FY22 FY24 FY22 FY24 Growth of FMCG portfolio to Direct reach outlets in be ahead of overall business Southern Africa 90
Slide 90: Unique approach for each country
Unique approach for each country Segment Business Growth Profitability Volatility Structurally Southern Africa High Margin strong businesses ~ Double Digit Mild Godrej International/ (~20% EBITDA) (Top tier) Export Geographies USA Medium Margin Low single digit Stable Businesses with Chile potential
Slide 91: Top tier (1/2): Sustain strong performance in Southern Africa
Top tier (1/2): Sustain strong performance in Southern Africa Re-launched Inecto Naturals DARLING OMB Salon fresh braids, no matter what! •••••• 7a.u]nor f_a Superior octng 2 YR UVG CAGR Penetration Delta Darling ~110 ~220 bps in RSA 92
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Slide 93: Top tier (1/2): Sustain strong performance in Southern Africa
Top tier (1/2): Sustain strong performance in Southern Africa Re-launched Inecto Naturals DARLING OMB Salon fresh braids, no matter what! •••••• 7a.u]nor f_a Superior octng 2 YR UVG CAGR Penetration Delta Darling ~110 ~220 bps in RSA 94
Slide 94: Slide 94
Slide 95: Top tier (2/2): Godrej International, consolidating in one global organisation
Top tier (2/2): Godrej International, consolidating in one global organisation I I I I 0 1 -- Serves Indian and FMCG Distributor Low overheads, African diaspora Categories led model High EBITDA margin consumers across the globe Delivered strong performance in FY24 Huge headroom for future growth 96
Slide 96: Middle tier: Implementing structural changes to improve profitability
Middle tier: Implementing structural changes to improve profitability Reducing costs… Media …whileinvestments strengthening our brands Reduced SKUs by X ~40% (in FY23) 1.4x t From FY22 to FY24 - VN MegaGrowth (in FY23) VN Africa Latin America 97
Slide 97: - ·4
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Slide 98: Middle tier: Implementing structural changes to improve profitability
Middle tier: Implementing structural changes to improve profitability Reducing costs… Media …whileinvestments strengthening our brands Reduced SKUs by X ~40% (in FY23) 1.4x t From FY22 to FY24 - VN MegaGrowth (in FY23) VN Africa Latin America 99
Slide 99: Slide 99
Slide 100: Bottom tier: East Africa reorganisation completed
Bottom tier: East Africa reorganisation completed Impact on cash flow Historical revenue of reorganised business Revenue Period (in ₹ crore) Q4FY23 132* 0 0 Q1FY24 132 Q2FY24 113 Q3FY24 93 Positive cash flow impact Total 470 *Q4FY24 revenue ₹45 crore on account of reorgansation of business during th
Slide 101: Rationalising GAUM business
Rationalising GAUM business Total exceptional Media Assumptions investments accounting charge growth X USD revenue 0% -7% ₹2,378 EBITDA margin (in FY23) 13% -19% Crore Non-cash charge 1.4x Terminal value growth (in FY23) 6% -7% 102
Slide 102: Aspirational EBITDA shape
Aspirational EBITDA shape Current Future Southern Godrej Southern Africa International/ Africa Godrej International/ Export Western Western Export Geographies Africa Africa Geographies Argentina Argentina USG USG Chile Chile USA USA Eastern Africa EBITDA% EBITDA% Target to move from ~8% - 10% EBITDA
Slide 103: Our medium term aspirations
Our medium term aspirations Volume growth EBITDA margin Mid single >15% digit In 2 years 104
Slide 104: Financials
Financials Aasif Malbari 105
Slide 105: FY24 – All round performance
FY24 – All round performance Consolidated Business Growth (year-on-year) Reported Organic Underlying Volume Growth 10% 7% Net Sales 6% 3% Net Sales (Constant Currency) 21% 18% EBITDA* 21% - EBITDA* + Working Media 27% - Net Profit (Reported) -133% - Net Profit (without exceptional, one-off items) 13
Slide 106: Broad-based UVG and margin expansion
Broad-based UVG and margin expansion Africa, USA Latin America Consolidated India Indonesia & Middle East & SAARC Reported 10% 13% 2% UVG 11% 21% Organic 7% 6% 3% FY24 Operating EBITDA* Margin 21.1% 26.8% 20.9% 10.2% 0.8% Change in EBITDA* Margin +260 +230 +220 +320 (330) (bps) (y-y) *EBITDA (incl.
Slide 107: Significantly improved cash from operations
Significantly improved cash from operations… Underlying Cash from Operations (In ₹ crore) ~2,600 ~1,700 FY20-FY22 Average FY23-FY24 Average 108
Slide 108: …with clear capital allocation strategy in place
…with clear capital allocation strategy in place Dividend policy Capex Expect the dividend We plan to invest payout ratio to average ~50% ~₹900crore in organic (range +/- 20%) manufacturing capex over next 18-24 months of the annual Profit After Tax of the Company. Capex to normalise post this 109
Slide 109: Consolidated business to deliver in FY25
Consolidated business to deliver in FY25 Volume growth EBITDA growth High single Mid-teens digit 110
Slide 110: Q&A
Q&A
Slide 111: Appendix
Appendix
Slide 112: FY24 Financial Performance
FY24 Financial Performance Growth (year-on-year) Consolidated Business India Business Underlying Volume Growth 10% (7%#) 13% (6%#) Net Sales 6% (3%#) 10% (4%#) t Net Sales (Constant Currency) 21% (18%#) - + EBITDA* 21% 20% + EBITDA* + Working Media 27% 29% + Net Profit (Reported) -133% -57% + Net Pr
Slide 113: Double-digit constant currency revenue growth
Double-digit constant currency revenue growth Sales Growth Constant Currency Growth Geography (₹ crore) (Year-on-year) (Year-on-year) Reported 8,268 10% India - Organic 7,802 4% Indonesia 1,887 14% 13% Reported 3,179 -7% 16% Africa, USA and Middle East Organic 3,179 -5% 18% Latin America and SAARC 7
Slide 114: EBITDA margin expansion across key geographies
EBITDA margin expansion across key geographies Africa, USA Latin America Consolidated India Indonesia & Middle East & SAARC FY24 Reported EBITDA* Margin 21.1% 27.1% 20.5% 9.7% 0.8% Business support charges, royalty - (23.7) 7.5 16.0 0.2 and technical fees (₹ crore) FY24 Operating EBITDA* Margin 21.1
Slide 115: Net profit reconciliation statement
Net profit reconciliation statement Consolidated Business FY2024 FY2023 (A) Net Profit (Reported) -561 1703 (B) Exceptionals (Post tax): GAUM-Q4 FY24 2,389 - Others 145 44 (C) Net Profit (Without exceptional and one-off items) (A+B) 1,974 1,746 116 Note: All values are in ₹ crore and rounded off
Slide 116: Our ESG targets for FY2025-26 and Q3 FY2024 performance
Our ESG targets for FY2025-26 and Q3 FY2024 performance Environment* Vision Goals for FY2025-26 Performance update Influence Ongoing community waste management projects in 6 municipalities. Ensure efficient waste management systems for 7 municipalities in India sustainable Source segregation achieve
Slide 117: Our ESG targets for FY2025-26 and Q3 FY2024 performance
Our ESG targets for FY2025-26 and Q3 FY2024 performance Environment* Vision Goals for FY2025 Performance update Lead in 45% reduction in GHG emission intensity and carbon neutrality for 48% reduction in GHG emission intensity sustainability Scope-1&2 from FY11 baseline action 40% reduction in specif
Slide 118: Our ESG targets for FY2025-26 and Q3 FY2024 performance
Our ESG targets for FY2025-26 and Q3 FY2024 performance Social* Vision Goals for FY2025 Performance update Equip communities Empower 60,000 women in beauty skills, across Trained, upskilled and reached out to 24,565 women beauty with skills that emerging markets globally entrepreneurs, young girls,
Slide 119: Shareholding pattern as on March 31, 2024
First Sentier Others 6.2% Blackrock DII 8.5% Vanguard I GIC Others FII 22.1% Capital Group I Government Pension Fund Global Promoters ICICI Prudential Life 63.2% Insurance SBI Aditya Birla Sun Life UTI As on March 31, 2024 120
Slide 120: Thank you
Thank you www.godrejcp.com
Godrej Consumer Products — Investor Presentation (May 2024) on 6ix