Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q2 FY2023 Earnings Presentation
29 slides from Godrej Consumer Products's earnings presentation, Nov 8, 2022
Slide 1: Q2FY2023 Investor and Analyst Performance Update
Q2FY2023 Investor and Analyst Performance Update 8 November, 2022
Slide 2: 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 3: Our purpose and strategy
Our purpose and strategy Environmental, Business Purpose social, and aspiration governance (ESG) Bring the goodness of Drive penetration-led Become sustainability leaders, health and beauty to volume growth through influence sustainable consumption, consumers in category development and drive social
Slide 4: Key Highlights
KEY HIGHLIGHTS
Slide 5: Steady Sales growth of 7% (3-year CAGR 9%)
Steady Sales growth of 7% Consolidated Sales growth 7% (8% CC) India Sales growth 8% (3-year CAGR 9%); Sales 3-year CAGR 9% (9% CC) 3-year CAGR 9% growth, excluding hygiene in Indonesia, at 10% Consolidated EBITDA growth (15)% 1 Underlying Volume Growth: 2 Steady growth in India 8% (3-year CAGR 9%),
Slide 6: Financial Performance Update
FINANCIAL PERFORMANCE UPDATE
Slide 7: Q2 FY2023: Financial performance
Q2 FY2023: Financial performance Consolidated India Growth (year-on-year) Business Business Net Sales (Reported) 7% 8% Net Sales (Constant Currency) 8% - EBITDA (15%) (5%) EBITDA + Working Media (1%) 9% Net Profit (Reported) (25%) (8%) Net Profit (Without exceptional and one-off items) (21%) (4%) 7
Slide 8: Q2 FY2023: Exceptional and One-off Items
Q2 FY2023: Exceptional and One-off Items Consolidated Business Q2 FY2023 Q2 FY2022 Net Profit (Reported) 359 479 Exceptionals (Post tax) Restructuring cost in Latin America and Indonesia 3.8 1.4 Deferred Tax - Change in maximum marginal tax rate in India 0.1 (0.1) Settlement under VAT amnesty scheme
Slide 9: Steady growth in India, Africa, USA & Middle East; Indonesia ex-hygiene
Q2 FY2023: Steady growth in India (3-year CAGR 9%), Africa, USA & Middle East (3-year CAGR 13% CC); Indonesia growth ex-hygiene 8% CC Constant Sales Growth Geography Currency Growth ( crore) (Year-on-year) (Year-on-year) India 1,953 8% - Indonesia 408 (8)% (11)% Indonesia Ex-hygiene 12% 8% Africa, U
Slide 10: Q2 FY2023: Bridge between Reported and Operating EBITDA
Q2 FY2023: Bridge between Reported and Operating EBITDA Africa, USA Latin America India Indonesia & Middle East & SAARC Q2FY23 Reported EBITDA Margin 21.9% 16.8% 8.6% 1.6% Business support charges, Royalty & (5.9) 1.2 4.9 (0.2) Technical fees ( crore) Q2FY23 Operating EBITDA Margin 21.6% 17.1% 9.2%
Slide 11: Net Debt to Equity continues to improve; inventory reduction focus
Q2 FY2023: Net Debt to Equity continues to improve; Focus on significant inventory reduction and debtors realisation Core Net Working Capital (Days) Net Debt/Equity (x) 0.04 53 46 -0.07 Sept-21 Sept-22 Sept-21 Sept-22 ROE* ROCE* Operating ROCE* 56.8% 41.7% 18.5% 20.1% 15.5% 12.1% Sept-21 Sept-22 Sept
Slide 12: India Business Update
INDIA BUSINESS UPDATE
Slide 13: Steady sales growth
Steady sales growth Financial performance Operating performance • Sales growth of 8% driven by pricing; 3-year CAGR of 9% • Strong growth momentum in Personal Care continues; steady performance in Home Care • EBITDA margins in India at 21.6%; contracted by 300 bps year-on- year, Quality of profits i
Slide 14: Strong momentum in Personal Care; steady performance in Home Care
Strong momentum in Personal Care; steady performance in Home Care Sales Q2 Growth Category ( crore) (Year-on-year) Home Care 869 2% Personal Care 1,017 18% Unbranded and Exports 67 (26)% Total Net Sales 1,953 8% Volume Growth _ (5)% 14
Slide 15: Home Care (1/2): Continued seeding of category development initiatives
Home Care (1/2): Continued seeding of category development initiatives • Household Insecticides performance impacted by a delayed monsoon in the Eastern and Northern parts of India • Continue to deepen penetration • In line with our strategy of driving category development, we launched new communica
Slide 16: Home Care (2/2): Strong performance in Air Fresheners
Home Care (2/2): Strong performance in Air Fresheners • Air Fresheners continue to witness strong growth and gain market share on MAT basis • Our category development initiative and communication around ‘If bathrooms/rooms could talk’ is receiving encouraging consumer response • Continued investment
Slide 17: Personal Care (1/2): Double-digit growth in Personal Wash & Hygiene
Personal Care (1/2): Double-digit growth in Personal Wash & Hygiene continues • Continued momentum in Personal Wash & Hygiene, with double-digit sales growth • Continue to gain market share on MAT basis and deepen penetration in Soaps led by category development initiatives • Continued focus on leve
Slide 18: Personal Care (2/2): Steady performance continues in Hair Colour
Personal Care (2/2): Steady performance continues in Hair Colour • Hair Colour witnessed close to double-digit growth • Godrej Expert Rich Crème continues to perform well, driven by strong marketing campaigns and influencer programmes • Continued encouraging response to our INR 15 Godrej Expert Rich
Slide 19: International Business Update
INTERNATIONAL BUSINESS UPDATE
Slide 20: Weak performance in Indonesia; recovery in core business on track
Weak performance in Indonesia; recovery in core business on track • Sales dropped by 11% (constant currency); Sales growth excluding Hygiene (Saniter) was 8% (constant currency) • EBITDA margins at 17.1%, decreased by 930 bps year-on-year due to consumption of high-cost inventory, upfront higher mar
Slide 21: Africa, USA & Middle East continued double-digit sales growth momentum
Africa, USA & Middle East continued double-digit sales growth momentum • Continued momentum; double-digit sales growth of 13% (constant currency) • EBITDA margins at 9.2%; contracted by 270 bps year-on-year. Quality of profits improving. In line with our strategy to drive category development, signi
Slide 22: Environmental, Social, and Governance Update
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE
Slide 23: Our ESG targets for FY2025 and Q1 FY2023 performance
Our ESG targets for FY2025 and Q1 FY2023 performance Environment* Vision Goals for FY2025 Performance update Community waste management project ongoing in 1 municipality. Influence Ensure efficient waste management systems for 3 municipalities in India Achieved 20% source segregation through door-to-
Slide 24: Our ESG targets for FY2025 and Q1 FY2023 performance
Our ESG targets for FY2025 and Q1 FY2023 performance Environment* Vision Goals for FY2025 Performance update Lead in 45% reduction in GHG emission intensity (to be revised based on SBTi) 49% reduction in GHG emission intensity sustainability and carbon neutrality for Scope 1 & 2 from FY11 baseline a
Slide 25: Our ESG targets for FY2025 and Q1 FY2023 performance
Our ESG targets for FY2025 and Q1 FY2023 performance Social* Vision Goals for FY2025 Performance update Equip communities Empower 200,000 women in beauty skills, across Trained and upskilled 6,443 women beauty entrepreneurs, young with skills that emerging markets globally girls, and men in India an
Slide 26: Appendix
APPENDIX
Slide 27: Shareholding pattern
Shareholding pattern First State Others 6.1% DII Blackrock 6.3% Vanguard FII 24.4% Others Temasek Promoters 63.2% Government of Singapore Capital Group UTI Kotak Arisaig Partners Government Pension Fund Global 27
Slide 28: Contact Us
Contact Us Institutional investors Retail investors Tapan Joshi R Shivshankar Email: tapan.joshi@godrejcp.com Email: r.shivshankar@godrejcp.com Tel: +91 22 2519 5433 Tel: +91 22 2519 4359 28
Slide 29: Thank you
Thank you www.godrejcp.com
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