Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q3 FY2020 Earnings Presentation
25 slides from Godrej Consumer Products's earnings presentation, Jan 29, 2020
Slide 1: Performance Update - 3Q FY20
Performance Update - 3Q FY20 January 29, 2020
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 3Q FY20 I January 29, 2020
Slide 3: 3QFY20 Financial Performance
3QFY20 FINANCIAL PERFORMANCE Consolidated India International Growth y-y Business Business Business Net Sales – Reported 2% 1% 3% Volume 7% Net Sales – Constant Currency 6% 1% 11% EBITDA 2% flat 9% EBITDA – Constant Currency 2% flat 9% Net Profit – Reported 5% 10% (13%) Net Profit without exceptiona
Slide 4: Exceptional and One-Off Items
EXCEPTIONAL AND ONE-OFF ITEMS 3QFY20 3QFY19 Consolidated India International Consolidated India International Net Profit - Reported 445 365 80 424 332 92 Exceptional (post tax): Restructuring cost in LAT AM 4 - 4 3 - 3 Escrow release and forex impact on - - - (6) - (6) gains from divestment of Europ
Slide 5: Bridge Between Reported to Operating EBITDA
BRIDGE BETWEEN REPORTED TO OPERATING EBITDA India International Indonesia GAUM Others 3QFY20 Reported EBITDA Margin 29.6% 15.0% 24.1% 12.0% 2.5% Business support charges, Royalty & (10.2) 10.2 2.3 6.4 1.5 Technical fees (₹ crore) 3QFY20 Adjusted EBITDA Margin 28.9% 15.4% 24.6% 12.2% 3.5% 3QFY19 Adju
Slide 6: Key Balance Sheet Data
KEY BALANCE SHEET DATA December 31, December 31, September 30, Particulars Units 2019 2018 2019 Working Capital ex-Cash* ₹ crore 435 365 457 Working Capital* Days 16 13 17 Cash & Equivalents ₹ crore 1,535 1,574 1,330 Debt denominated in INR ₹ crore 422 312 423 Debt denominated in USD ₹ crore 2893 (U
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 3Q FY20 I January 29, 2020
Slide 8: Momentum of Strong Volume Growth Continues
MOMENTUM OF STRONG VOLUME GROWTH CONTINUES India delivers 7% volume growth Robust volume growth led by new product launches, effective marketing campaigns and consumer offers EBITDA margins at 28.9% 1% Flat 1,472 1,492 433 432 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Net Sales Adjusted EBITDA 8 I GCPL I Pe
Slide 9: Robust Volume Growth; Gained Market Shares Across Categories
ROBUST VOLUME GROWTH; GAINED MARKET SHARES ACROSS CATEGORIES Sales Growth India Business ₹ crore year-on-year Household Insecticides 617 3% Soaps 416 (4)% Hair Colours 155 (4)% Other Categories 295 7% Unbranded and Exports 84 (3%) Total 1,568 1% Sales and trade promotion spends, etc. to be (76) (6)%
Slide 10: Strong Volume Growth in Soaps Continues
STRONG VOLUME GROWTH IN SOAPS CONTINUES Mid single digit volume growth; price offs and consumer offers resulting in sales decline of 4% Continue to gain market shares (40 bps gain in value share in Q3FY20) Continued focus on micro marketing initiatives for scaling up growth 10 I GCPL I Perform
Slide 11: Continued Recovery in Household Insecticides
CONTINUED RECOVERY IN HOUSEHOLD INSECTICIDES Higher than mid single digit volume growth resulting in 3% value growth Continue to gain market shares in overall category including incense sticks (70 bps gain in value share in Q3FY20) Initial response for recently launched Good Knight Gold Flash
Slide 12: Soft Performance in Hair Colour
SOFT PERFORMANCE IN HAIR COLOUR Growths impacted by general slowdown in hair colour category due its discretionary nature and consumers stretching consumption; secondary growth flat Maintained market share in Q3FY20 Godrej Expert Easy 5 minute shampoo hair colour performing well in Southern st
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 3Q FY20 I January 29, 2020
Slide 14: Mixed Performance in International Business
MIXED PERFORMANCE IN INTERNATIONAL BUSINESS • International business delivers constant currency sales growth of 11% • Adjusted EBITDA margin of 15.4%; increase of 80 bps y-y 3% 1,287 1,244 9% 198 182 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Reported Sales Adjusted EBITDA 14 I GCPL I Performance Update 3Q FY20 I
Slide 15: Strong Constant Currency Performance in International Business
STRONG CONSTANT CURENCY PERFORMANCE IN INTERNATIONAL BUSINESS Constant Currency Sales Growth International Business Growth ₹ crore year-on-year year-on-year Indonesia 448 13% 9% GAUM 679 (1%) 6% Others* 161 (3%) 38% Total Net Sales 1,287 3% 11% GAUM includes Africa, USA and Middle East *Others inclu
Slide 16: Margin Expansion Driven by Indonesia
MARGIN EXPANSION DRIVEN BY INDONESIA Adjusted EBITDA Margin 24.6% 12.2% 3.5% Indonesia GAUM Others year-on-year 120 bps (130) bps 520 bps change GAUM includes Africa, USA and Middle East 16 I GCPL I Performance Update 3Q FY20 I January 29, 2020 Others include Latin America and SAARC
Slide 17: Continued Growth Momentum in Indonesia
CONTINUED GROWTH MOMENTUM IN INDONESIA WITH HIGH SINGLE DIGIT CONSTANT CURRENCY SALES GROWTH Sales growth of 9% in constant currency terms driven by Household Insecticides and Baby wipes Continue to gain market share in Household insecticide Focus on stepping up innovation momentum across cate
Slide 18: Mixed Performance in GAUM Cluster
MIXED PERFORMANCE IN GAUM CLUSTER Sales increase of 6% in constant currency terms; Africa sales grew by 9% West and South cluster recorded healthy low double digit growth rates East cluster continued to witness degrowth on account of liquidity challenges and temporary impact of demonetization
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 3Q FY20 I January 29, 2020
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,
Slide 21: Shareholding Pattern
SHAREHOLDING PATTERN Others, 6.8% DII, 2.3% FII, 27.8% First State Promoter, 63.2% Temasek Arisaig Partners Others Blackrock Government of Singapore Vanguard Capital Group Aberdeen Genesis Societe Generale 21 I GCPL I Performance Update 3Q FY20 I January 29, 2020 *As of 31st Dec’19
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
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 3Q FY20 I January 29, 2020
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
Slide 25: Thank You for Your Time and Consideration
HY THANK YOU FOR YOUR TIME AND CONSIDERATION
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