Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q1 FY2022 Earnings Presentation
37 slides from Godrej Consumer Products's earnings presentation, Aug 4, 2021
Slide 1: Q1FY2022 Investor and Analyst Performance Update
Q1FY2022 Investor and Analyst Performance Update 4 August, 2021
Slide 2: 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
Slide 3: Our Purpose and Strategy
Our Purpose and Strategy Environmental, Business Purpose Social, and Aspiration Governance (ESG) Bring the goodness of Drive profitable Become sustainability leaders, health and beauty to double-digit growth influence sustainable consumption, consumers in led by innovation and and drive social impac
Slide 4: Key Highlights
KEY HIGHLIGHTS
Slide 5: Strong start to the year; double-digit profitable sales growth of 24%
Strong start to the year; Consolidated 24% (25% CC) India Sales 19% double-digit profitable sales Sales growth growth growth of 24%; 2-year CAGR Consolidated 29% of 11% EBITDA growth 1 Broad based double-digit growth in both Home Care and 2 Strong growth across clusters except Indonesia; India 19%; P
Slide 6: Broad based double-digit growth in both Home Care and Personal Care
1 Broad based double-digit growth in both Home Care and Personal Care HOME CARE PERSONAL CARE Performance Q1FY2022 (INR) 14% 29%
Slide 7: Strong growth across clusters except Indonesia
2 Strong growth across clusters except Indonesia; India 19%; Africa, USA & Middle East 60% (CC); Latin America & SAARC 48% (CC); Indonesia 0% (CC) Latin America Africa, USA & Middle East Indonesia India Performance Q1FY2022 48%* (CC) 60% (CC) 0% (CC) 26%* (INR) 59% (INR) 1% (INR) 19% (INR) Note: *In
Slide 8: Home Care delivers strong growth of 14%
3 Home Care delivers strong growth of 14% • Household Insecticides: Strong performance; backed by successful innovation and full portfolios across formats and price points • Air Fresheners: High growth on a low base; being discretionary, it should continue to witness gradual recovery • Home Hygiene:
Slide 9: Strong growth momentum continues in Personal Care; 29% growth
4 Strong growth momentum continues in Personal Care; 29% growth • Personal Wash & Hygiene: Growth led by strong performance in India • Hair Colours: High growth on a low base; witnessing recovery in India • Hair Care: Continued robust growth in Africa, USA & Middle East Godrej Expert Rich Cinthol So
Slide 10: Consolidated EBITDA margins at 21.3% (29% growth)
5 Consolidated EBITDA margins at 21.3% (29% growth); margins increase by 90 bps • Consolidated EBITDA growth of 29%; 2-year CAGR of 15% • EBITDA margins in International business at 14.8%; increase of ~420 bps year-on-year driven • Consolidated EBITDA margins at 21.3%; increase of 90 bps by scale le
Slide 11: Navigating the second wave of COVID-19
6 Navigating the second wave of COVID-19 Continued to adopt a safety-first principle across our ecosystem: • Supporting team members, their families and our business partners across • Donated an oxygen plant to a 180-bed COVID-19 hospital in Mumbai various geographies to get fully vaccinated • Provid
Slide 12: Financial Performance Update
FINANCIAL PERFORMANCE UPDATE
Slide 13: Q1 FY2022: Financial Performance
Q1 FY2022: Financial Performance Consolidated India Growth (year-on-year) Business Business Net Sales (Reported) 24% 19% Net Sales (Constant Currency) 25% - EBITDA 29% 15% Net Profit (Reported) 5% 20% Net Profit (Without exceptional and one-off items) 38% 13% 13
Slide 14: Q1 FY2022: Exceptional and One-off Items
Q1 FY2022: Exceptional and One-off Items Consolidated Business Q1 FY2022 Q1 FY2021 Net Profit (Reported) 414 395 Exceptional (Post tax) Restructuring cost in Latin America 1.6 4.6 Impairment of investment (BBLUNT in India) - 15.4 Reversal of contingent consideration in USA - (33.2) Deferred Tax Asset
Slide 15: Q1 FY2022: Strong double-digit growth in India, Africa, USA & Middle East and Latin America
Q1 FY2022: Strong double-digit growth in India, Africa, USA & Middle East and Latin America; weak performance in Indonesia Constant Sales Growth Geography Currency Growth ( crore) (Year-on-Year) (Year-on-Year) India 1,621 19% - Indonesia 411 1% 0% Africa, USA and Middle East 694 59% 60% Latin Americ
Slide 16: Q1 FY2022: Bridge between Reported to Operating EBITDA
Q1 FY2022: Bridge between Reported to Operating EBITDA Africa, USA Latin America India Indonesia & Middle East & SAARC Q1FY22 Reported EBITDA Margin 26.6% 23.0% 9.2% 13.2% Business support charges, Royalty & (7.0) 1.6 4.9 0.5 Technical fees ( crore) Q1FY22 Operating EBITDA Margin 26.2% 23.4% 9.9% 13
Slide 17: Q1 FY2022: Healthy Balance Sheet
Q1 FY2022: Healthy Balance Sheet Particulars Units June 30, 2021 June 30, 2020 Mar 31, 2021 Working Capital ex-Cash* crore 709 213 337 Working Capital* Days 23 8 11 Cash & Equivalents crore 1,726 1,292 1,332 Total Debt crore 2,070 3,023 1,768 Debt denominated in INR crore 199 70 0.1 Debt denominated
Slide 18: India Business Update
INDIA BUSINESS UPDATE
Slide 19: Strong double-digit sales growth
Strong double-digit sales growth Financial performance Operating performance • Sales growth of 19%; 2-year CAGR of 12% • Broad-based growth within categories of Home Care and • EBITDA growth of 15%; 2-year CAGR of 19% Personal Care • EBITDA margins in India at 26.2%; decrease of 110 bps • Focus on e
Slide 20: Broad based double-digit sales growth
Broad based double-digit sales growth Sales Q1 Growth Category ( crore) (Year-on-Year) Home Care 687 21% Personal Care 868 17% Total Branded Sales 1,555 18% Unbranded and Exports 66 50% Total Net Sales 1,621 19% Branded Volume Growth _ 15%
Slide 21: Home Care (1/3): Strong growth in Household Insecticides
Home Care (1/3): Strong growth in Household Insecticides • Household Insecticides delivered strong double-digit growth; 2-year CAGR in double-digits • Broad-based growth across premium formats (aerosols, electrics and non-mosquito portfolio) and burning formats • Launched Goodknight Jumbo Fast Card
Slide 22: Home Care (2/3): Strong growth on a low base in Air Fresheners
Home Care (2/3): Strong growth on a low base in Air Fresheners; expect gradual recovery • Air Fresheners witnessed high growth on a low base; continue to see sequential recovery though the overall category continues to face headwinds due to its discretionary nature • Launched aer Power Pocket, a bat
Slide 23: Home Care (3/3): Strong performance in Home Hygiene
Home Care (3/3): Strong performance in Home Hygiene; expect gradual recovery in Fabric Care Home Hygiene • Strong demand amidst the second wave of COVID-19 • Continue to scale up our ProClean range of home cleaners Fabric Care • High growth on a low base; expect gradual recovery • Continue to build
Slide 24: Personal Care (1/2): Strong growth in Personal Wash & Hygiene
Personal Care (1/2): Strong growth in Personal Wash & Hygiene • Personal Wash & Hygiene continued momentum with strong double-digit sales growth; 2-year CAGR in double-digits • Continue to gain market share in Soaps led by micro marketing initiatives • Driving increase in consumption through tactica
Slide 25: Personal Care (2/2): High growth on a low base in Hair Colours
Personal Care (2/2): High growth on a low base in Hair Colours; witnessing recovery • Hair Colours grew in strong double-digits on a low base • Continue to gain market share • Godrej Expert Rich Crème continues to perform well driven by strong marketing campaigns and influencer programmes for advoca
Slide 26: Indonesia Business Update
INDONESIA BUSINESS UPDATE
Slide 27: Weak performance in Indonesia
Weak performance in Indonesia • Delivered sales growth of 0% (constant currency); 2-year constant currency CAGR of 3% • EBITDA margin at 23.4% marginally decreased by 20 bps year-on-year, despite scale deleverage • Recovery impacted by second wave of COVID-19 and adverse macroeconomic factors • Mixe
Slide 28: Africa, USA & Middle East Business Update
AFRICA, USA & MIDDLE EAST BUSINESS UPDATE
Slide 29: Africa, USA & Middle East delivers double-digit profitable sales growth
Africa, USA & Middle East delivers double-digit profitable sales growth • Broad based double-digit sales growth of 60% (constant currency); 2-year constant currency CAGR of 11% • EBITDA margin increased by 1170 bps year-on-year driven by scale leverage and cost saving initiatives • Strong sales growt
Slide 30: Environmental, Social, and Governance Update
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE
Slide 31: Our 5-year ESG Strategy
Our 5-year ESG Strategy Build a more diverse and inclusive Continue to constantly innovate Consistently lower our carbon workforce and a strong, stable, and to provide affordable and high footprint, water usage, waste, and use sustainable supply chain quality products to consumers in of plastic pack
Slide 32: Our ESG goals
Our ESG goals Monitor and track progress Be global leaders in Influence sustainable consumption on environmental goals Sustainability Environment Health and Well-being that Skills that empower A Human Rights action plan protects that helps us move from “Do no harm” to “Do good” Social Transparent re
Slide 33: Our 5-year ESG targets
Our 5-year ESG targets Skills that empower Health and Well-being Influence sustainable Be global leaders in Sustainability that protects consumption • Empower 1.20 lakh women • Strengthen public • Ensure one-third of all our • Achieve scope 1 and 2 carbon neutrality with beauty skills in healthcare
Slide 34: Appendix
APPENDIX
Slide 35: Shareholding Pattern
Shareholding Pattern First State Others 6.8% DII Temasek 3.1% Capital Group FII 26.9% Others Blackrock Promoters 63.2% Arisaig Partners Government of Government Pension Singapore Fund Global Vanguard Fidelity Genesis Emerging Markets Fund 35
Slide 36: Contact Us
Contact Us 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 36
Slide 37: Thank you
Thank you www.godrejcp.com
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