Godrej Consumer Products Limited · NSE:GODREJCP

Godrej Consumer Products — Q1 FY2020 Earnings Presentation

25 slides from Godrej Consumer Products's earnings presentation, Aug 1, 2019

  1. Slide 1: Performance Update - 1Q FY20

    Performance Update - 1Q FY20 August 1, 2019

  2. Slide 2: Performance Update

    PERFORMANCE UPDATE 1 Executive Summary - Key Highlights 2 Business Overview – India 3 Business Overview – International 4 Appendix 2 I GCPL I Performance Update 1Q FY20 I August 01, 2019

  3. Slide 3: 1QFY20 Financial Performance

    1QFY20 FINANCIAL PERFORMANCE Consolidated India International Growth y-y Business Business Business Net Sales – Reported (5%) 1% (11%) Volume 5% Net Sales – Comparable* 2% 1% 3% Net Sales – Constant Currency – Comparable* 4% 1% 9% EBITDA – Comparable* 7% 8% 5% EBITDA – Comparable – Constant Currency

  4. Slide 4: Exceptional and One-off Items

    EXCEPTIONAL AND ONE-OFF ITEMS 1QFY20 1QFY19 Consolidated India International Consolidated India International* Reported net profit 408 240 167 405 220 184 Exceptional (post tax): Restructuring cost in LatAm & 3 3 4 4 GAUM Balance proceeds from divestment (3) (3) of UK business Others 0.4 0.4 Deferre

  5. Slide 5: Bridge Between Reported to Operating EBITDA

    BRIDGE BETWEEN REPORTED TO OPERATING EBITDA India International Indonesia GAUM Others 1QFY20 Reported EBITDA Margin 23.9% 14.1% 23.1% 11.1% 1.8% Business support charges, Royalty & (7.6) 7.6 1.7 4.7 1.1 Technical fees (₹ crore) 1QFY20 Adjusted EBITDA Margin 23.3% 14.9% 23.6% 11.9% 2.6% 1QFY19 Adjust

  6. Slide 6: Key Balance Sheet Data

    KEY BALANCE SHEET DATA Particulars Units June 30, 2019 June 30, 2018 March 31, 2019 Working Capital ex-Cash* ₹ crore 347 591 272 Working Capital* Days 14 22 10 Cash & Equivalents ₹ crore 1,101 2,053 1,376 Debt denominated in INR ₹ crore 273 495 - Debt denominated in USD ₹ crore 2,696 (USD 388) 3,552

  7. Slide 7: Performance Update

    PERFORMANCE UPDATE 1 Executive Summary - Key Highlights 2 Business Overview – India 3 Business Overview – International 4 Appendix 7 I GCPL I Performance Update 1Q FY20 I August 01, 2019

  8. Slide 8: Steady Sales Volume Growth of 5%

    STEADY SALES VOLUME GROWTH OF 5%  Volume growth of 5% (2 year CAGR 10%); value growth of 1% (2 year CAGR 8%)  Continue to witness general consumption slowdown; hopeful of gradual recovery in coming quarters  Volume growth led by new product launches, effective marketing campaigns and consumer off

  9. Slide 9: Improvement in Volume Growth Trajectory

    IMPROVEMENT IN VOLUME GROWTH TRAJECTORY Sales Growth India Business ₹ crore year-on-year Soaps 556 3% Household Insecticides 427 (4)% Hair Colours 181 Flat Other Brands 146 20% Unbranded and Exports 62 13% Total 1,372 2% Sales and trade promotion spends, etc. to be (82) 33% netted off from Sales as

  10. Slide 10: All Round Strong Performance in Soaps

    ALL ROUND STRONG PERFORMANCE IN SOAPS  Sales growth of 3% led by strong volume growth; 2 year value CAGR of 7%  Continue to gain market shares  Focus on micro marketing initiatives for scaling up growth 10 I GCPL I Performance Update 1Q FY20 I August 01, 2019

  11. Slide 11: Expect Gradual Recovery in Household Insecticides

    EXPECT GRADUAL RECOVERY IN HOUSEHOLD INSECTICIDES  Sales decline of 4%; 2 year sales CAGR of 7%  Naturals neem incense stick scaled up to six states as of July’19 backed by marketing investments; accelerated PR efforts on illegal incense sticks  Driving volume growths in electrics through consume

  12. Slide 12: Soft Performance in Hair Colour Driven by General Slowdown

    SOFT PERFORMANCE IN HAIR COLOUR DRIVEN BY GENERAL SLOWDOWN  Sales growth flat during the quarter; 2 year CAGR of 6%  Godrej Expert Rich Crème performed well during the quarter  Launched Godrej Expert Easy 5 minute shampoo hair colour in Southern states 12 I GCPL I Performance Update 1Q FY20 I Aug

  13. Slide 13: Performance Update

    PERFORMANCE UPDATE 1 Executive Summary - Key Highlights 2 Business Overview – India 3 Business Overview – International 4 Appendix 13 I GCPL I Performance Update 1Q FY20 I August 01, 2019

  14. Slide 14: Mixed Performance in International Business

    MIXED PERFORMANCE IN INTERNATIONAL BUSINESS  International business delivers constant currency sales growth* of 9%  Adjusted EBITDA* margin of 14.9% increases by 40 bps year-on-year 158 5% 1,090 3% 1,065 1,038 1,040 151 990 940 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Adjusted Sales* Adjusted EBITDA* *Adjusted

  15. Slide 15: Mixed Performance in International Business

    MIXED PERFORMANCE IN INTERNATIONAL BUSINESS Constant Currency Sales Growth International Business Growth ₹ crore year-on-year year-on-year Indonesia 372 5% 4% GAUM 562 (1)% 2% Others 131 10% 56% Total Net Sales 1,065 3% 9% GAUM includes Africa, USA and Middle East Others include Latin America and SA

  16. Slide 16: Margin Expansion in Indonesia and LatAm; Upfront Marketing in GAUM

    MARGIN EXPANSION IN INDONESIA AND LATAM; CONTINUE WITH UPFRONT MARKETING INVESTMENTS IN GAUM Adjusted EBITDA Margin* 24% 12% 3% Indonesia GAUM Others year-on-year 140 bps (140) bps 540 bps change GAUM includes Africa, USA and Middle East Others include Latin America and SAARC *Adjusted for Europe bu

  17. Slide 17: Delivered Mid Single Digit Profitable Sales Growth in Indonesia

    DELIVERED MID SINGLE DIGIT PROFITABLE SALES GROWTH IN INDONESIA  Sales growth of 4% in constant currency terms led by Air Fresheners  Sales growth partially impacted by Modern Retail channel  Focus on stepping up innovation momentum across categories and gradual expansion of General Trade distrib

  18. Slide 18: Mixed Performance in GAUM Cluster

    MIXED PERFORMANCE IN GAUM CLUSTER  Sales growth of 2% in constant currency terms; Africa growth of 4% in constant currency terms  South Africa off to a good start with double digit sales growth; adverse macro conditions in smaller markets impacted growth  Both dry hair (~52% of the overall sales)

  19. Slide 19: Performance Update

    PERFORMANCE UPDATE 1 Executive Summary - Key Highlights 2 Business Overview – India 3 Business Overview – International 4 Appendix 19 I GCPL I Performance Update 1Q FY20 I August 01, 2019

  20. Slide 20: Our Good & Green Commitment

    OUR GOOD & GREEN COMMITTMENT Ensuring Greener Product Employability India Innovation Train 1 million youth in skills Achieve zero waste to landfill, Generate a third of our portfolio that will enhance their carbon neutrality and a positive revenues from 'good' and/or earning potential water balance,

  21. Slide 21: Shareholding Pattern

    SHAREHOLDING PATTERN Others, 6.7% DII, 2.1% FII, 28% Promoter, 63.3% First State Temasek Arisaig Partners Others GIC Blackrock Vanguard Capital Fidelity LIC Aberdeen 21 I GCPL I Performance Update 1Q FY20 I August 01, 2019 As of 30th June, 2019

  22. Slide 22: We Remain Laser Focused on Executing Our Key Priorities

    WE REMAIN LASER FOCUSED ON EXECUTING OUR KEY PRIORITIES #1 Extending leadership in our core categories and geographies #2 Accelerating innovation and building purposeful brands #3 Leveraging digital #4 Enhancing go-to-market #5 Making our supply chain best-in-class #6 Fostering an inclusive, agile a

  23. Slide 23: Contact Us for Any Queries

    CONTACT US FOR ANY QUERIES Institutional investors Retail investors Sameer Shah R Shivshankar Email: sa.shah@godrejcp.com Email: r.shivshankar@godrejcp.com Tel: +91 22 2519 4467 Tel: +91 22 2519 4359 23 I GCPL I Performance Update 1Q FY20 I August 01, 2019

  24. Slide 24: Disclaimer

    DISCLAIMER Some of the statements in this communication may be forward looking statements 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 change

  25. Slide 25: Thank You for Your Time and Consideration

    HY THANK YOU FOR YOUR TIME AND CONSIDERATION

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