Godrej Consumer Products Limited · NSE:GODREJCP

Godrej Consumer Products — Q2 FY2024 Earnings Presentation

38 slides from Godrej Consumer Products's earnings presentation, Nov 1, 2023

  1. Slide 1: Cover letter to stock exchanges

    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 November 01, 2023 BSE Limited Corporate Rel

  2. Slide 2: Q2FY2024 Investor and Analyst Performance Update

    ' . i illi! • e-- .- l Q2FY2024 Investor and Analyst ance 6ii Performance Update November 1, 2023

  3. 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

  4. Slide 4: 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

  5. Slide 5: Committed to our strategy

    Committed to our strategy - -- . «z= i; I gy $ C0MI ACK 4 magic $ 1\ - 0gIc To Dy $ #AN 99.9% + /ASH 239.8% -· , .. /4 --- ,,,.,/!, • . / l- MAKES 200ml . »• • • •• - .. • •'• «d 1/ '· « £: ', « Lead through category Funded by People and planet development simplification alongside profit 4

  6. Slide 6: Category Development

    Category Development Build Drive relevance accessibility Lead through category development - Generate Develop trials innovative products 5

  7. Slide 7: Lead through category development

    +44% • Working Media increase r ■ ■ • in India Scaling up distribution of Aer O Car Air Fresheners . ,• • • • •• . .. • •'• «d 1/ '· « « ' '. Lead through category development Increase penetration in the Household Insecticides category 40sQuIT REPELLENT Machine + Mat Refill J° i e, • MI! T/ RFIL 6

  8. Slide 8: Simplification

    Simplification At SKU Business model rationalisation enhancement ! · Changes in Optimising organisational manufacturing structure footprint Funded by simplification FY22 FY26 Cost savings of ~400 bps 7

  9. Slide 9: Business model enhancement

    Business model enhancement AST Simplifying Hair Fashion operations to a Royalty model in ! · .4 select markets (largely in East Africa) .. euj/ p k L' Target implementation Expect profitability to by Q4 FY24 improve in the medium term Annualised FY25 Funded by simplification ~ 500 Crore 0 Revenue Rev

  10. Slide 10: People and planet alongside profit

    4 a ~ MAKES 500mt- Ar '55 _Ff {y $ rem40 C0MN PAC¥ 4 -- or magic gy + ,,, MIA fy4 magic gy $ m09gc magic READY To i $ HAN 99.9% WAS 99.9% % ···-""� � � ◄ - � le 442 5( i 8- , or4el MAKES 200ml + I B OTTLE + 1 REFILL ·i) · " [e eg L>" People and planet LAVENDER MAKES i 500ml alongside profit LAVENDER

  11. Slide 11: Dividend

    Dividend November 1, 2023 Outlook The Board of Directors have We will strive to maintain a steady declared an interim dividend of stream of dividend. 500% ( 5 per share). Expect the dividend payout ratio to This would result in a payout average ~50% (range +/- 20%) of the of 511 crore. annual Profit

  12. Slide 12: Financial Performance Update

    FINANCIAL PERFORMANCE UPDATE

  13. Slide 13: Healthy volume growth and strong EBITDA performance

    Healthy volume growth and strong EBITDA performance Growth (year-on-year) Consolidated Business India Business Underlying Volume Growth 10% (6%#) 11% (4%#) + Net Sales 6% (2%#) 9% (2%#) + Net Sales (Constant Currency) 16% (12%#) - EBITDA* 30% 30% + EBITDA* + Working Media 31% 34% + Net Profit (Report

  14. Slide 14: Stable growth across markets

    Stable growth across markets Sales Growth Constant Currency Growth Geography ( crore) (Year-on-year) (Year-on-year) Reported 2,129 9% India - Organic 1,987 2% Indonesia 473 16% 14% Africa, USA and Middle East 816 (5%) 17% Latin America and SAARC 181 5% 99% Reported 3,568 6% 16% Total Net Sales Organ

  15. Slide 15: Strong margin expansion across key markets

    Strong margin expansion across key markets Africa, USA Latin America Consolidated India Indonesia & Middle East & SAARC Q2FY24 Reported EBITDA* Margin 19.7% 26.2% 17.5% 8.1% (0.8%) Business support charges, royalty - (5.8) 1.9 3.9 - and technical fees ( crore) Q2FY24 Operating EBITDA* Margin 19.7% 2

  16. Slide 16: Exceptional and One-off Items

    Exceptional and One-off Items Consolidated Business Q2 FY2024 Q2 FY2023 Net Profit (Reported) 433 359 Exceptionals (Post tax): Restructuring costs 10.5 3.8 Settlement of VAT and amnesty scheme in India - 14.6 Others - 0.1 Net Profit (Without exceptional and one-off items) 443 377 15 Note: All values a

  17. Slide 17: India Business Update

    INDIA BUSINESS UPDATE

  18. Slide 18: Volume growth in mid-single digit despite tough operating environment

    Volume growth in mid-single digit despite tough operating environment • Organic UVG of 4% and USG of 2% Robust margin improvement continues: • Gross Margin up 980 bps year-on-year • Home Care volume growth in mid-single digit and Personal • Increase in Working Media investment by 44% year-on-year Ca

  19. Slide 19: High single-digit reported sales growth

    High single-digit reported sales growth Sales Growth Category ( crore) (Year-on-year) Home Care 913 5% Personal Care 1,003 (1%) Total Branded 1,916 2% Unbranded and Exports 71 6% Total Net Sales (Organic) 1,987 2% Personal Care (Inorganic) 142 - Total Net Sales (Reported) 2,129 9% 18

  20. Slide 20: Home Care (1/2): Household Insecticides impacted due to seasonality

    Home Care (1/2): Household Insecticides impacted due to seasonality • Household Insecticides growth was flattish due to poor monsoons • Non-mosquito portfolio continues to consistently perform well • Our volume market share increased during the quarter, supported by category development activities 1

  21. Slide 21: Home Care (2/2): Consistently delivering double-digit growth in Air Fresheners

    Home Care (2/2): Consistently delivering double-digit growth in Air Fresheners • Air Fresheners continue to consistently deliver strong double-digit volume and value growth • Aer continues to gain share and enjoy market leadership • Aer O is performing well and receiving encouraging response 6 aer r

  22. Slide 22: Personal Care (1/2): Personal Wash delivers steady performance

    Personal Care (1/2): Personal Wash delivers steady performance • Personal Wash delivers low single-digit volume growth • Our market share increased, led by effective media campaigns and micro marketing initiatives • Magic Handwash continues to deliver strong double-digit volume growth gfy + magic $

  23. Slide 23: Personal Care (2/2): Continue to gain market share

    Personal Care (2/2): Continue to gain market share in an externally impacted environment • Hair Colour volumes grew in low single digit; growth was impacted due to one additional month of 'Shravan' (auspicious month according to the Hindu calendar) during the quarter • INR 15 Godrej Expert Rich Crèm

  24. Slide 24: Park Avenue and KamaSutra performance on track

    Park Avenue and KamaSutra performance on track • Sharp improvement in sequential sales run-rate, clocking sales of 142 crore • Integration largely completed; cost synergies to flow from 2HFY24 • Estimate EBITDA to be positive despite scaling up media investments • On track to achieve full-year ambit

  25. Slide 25: International Business Update

    INTERNATIONAL BUSINESS UPDATE

  26. Slide 26: Indonesia business delivers improved performance

    Indonesia business delivers improved performance • Sales grew by 14% (constant currency) and 16% in INR terms aided by media investments • EBITDA* margin at 17.9%, up 80 bps year-on-year led by gross margin expansion • Continue to scale up GT distribution, drive renovation in the portfolio and seed

  27. Slide 27: Double-digit constant currency sales growth continues in Africa, USA & Middle East

    Double-digit constant currency sales growth continues in Africa, USA & Middle East • Sales growth of 17% in constant currency terms; performance in INR terms was impacted by the devaluation of Naira • FMCG categories continue to outperform • EBITDA* margin at 8.5%, up 310 bps year-on-year led by gro

  28. Slide 28: Appendix

    APPENDIX

  29. Slide 29: 1QFY23 and 2QFY23 EBITDA Margin

    1QFY23 and 2QFY23 EBITDA Margin Africa, USA Latin America Consolidated India Indonesia & Middle East & SAARC Q1FY23 Reported EBITDA* Margin 16.8% 23.0% 15.1% 5.8% 0.6% Business support charges, royalty and - (6.8) 1.2 5.1 0.5 technical fees ( crore) Q1FY23 Operating EBITDA* margin 16.8% 22.7% 15.4%

  30. Slide 30: 3QFY23 and 4QFY23 EBITDA Margin

    3QFY23 and 4QFY23 EBITDA Margin Africa, USA Latin America Consolidated India Indonesia & Middle East & SAARC Q3FY23 Reported EBITDA* Margin 20.4% 27.7% 19.7% 8.5% 5.0% Business support charges, royalty and - (4.9) 1.9 3.7 (0.7) technical fees ( crore) Q3FY23 Operating EBITDA* margin 20.4% 27.4% 20.2

  31. Slide 31: Environmental, Social, and Governance Update

    ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE

  32. Slide 32: Our ESG targets for FY2025 and Q1 FY2024 performance

    Our ESG targets for FY2025 and Q1 FY2024 performance Environment* Vision Goals for FY2025 Performance update Influence Ensure efficient waste management systems for 7 municipalities in India, Ongoing community waste management projects in 5 municipalities sustainable diverting over 5,000 MT of waste

  33. Slide 33: Our ESG targets for FY2025 and Q1 FY2024 performance

    Our ESG targets for FY2025 and Q1 FY2024 performance Environment* Vision Goals for FY2025 Performance update Lead in 45% reduction in GHG emission intensity and carbon neutrality for 49% reduction in GHG emission intensity sustainability Scope1 and 2 from FY11 baseline action 40% reduction in specif

  34. Slide 34: Our ESG targets for FY2025 and Q1 FY2024 performance

    Our ESG targets for FY2025 and Q1 FY2024 performance 0o Social* cc=:f) Vision Goals for FY2025 Performance update Equip communities Empower 200,000 women in beauty skills, across Trained, upskilled and reached out to 26,807 women beauty with skills that emerging markets globally entrepreneurs, young

  35. Slide 35: Shareholding Pattern

    SHAREHOLDING PATTERN

  36. Slide 36: Shareholding pattern as on September 30, 2023

    First Sentier Others 6.4% Blackrock DII 7.3% Vanguard Others FII 23.1% GIC Capital Group Promoters 63.2% UTI Baron Fund Kotak Government Pension ICICI Prudential Life Fund Global Insurance As on September 30, 2023 35

  37. Slide 37: Contact Us

    Contact Us Institutional investors Retail investors Vishal Kedia R Shivshankar Email: vishal.kedia@godrejcp.com Email: r.shivshankar@godrejcp.com Tel: +91 22 2519 5721 Tel: +91 22 2519 4359 36

  38. Slide 38: Thank you

    Thank you Vo1lube Linked[] www.godrejcp.com

Godrej Consumer Products — Q2 FY2024 Earnings Presentation on 6ix