Godrej Consumer Products Limited · NSE:GODREJCP

Godrej Consumer Products — Q4 FY2020 Earnings Presentation

38 slides from Godrej Consumer Products's earnings presentation, May 13, 2020

  1. Slide 1: Performance Update - 4Q FY20

    Performance Update - 4Q FY20 May 13, 2020 1 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  2. Slide 2: Performance Update agenda

    PERFORMANCE UPDATE 1 Current Business Update 2 Executive Summary - Key Highlights 3 Business Overview – India 4 Business Overview – International 5 Appendix 2 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  3. Slide 3: Snapshot on operations across clusters

    SNAPSHOT ON OPERATIONS ACROSS CLUSTERS GAUM INDIA INDONESIA Complete lockdown (ex Supply chain disruption No major impact US) from late March to following severe lockdown in from COVID 19 early May’20 late March; April‘20 saw a gradual supply chain recovery 3 I GCPL I Performance Update 4Q FY20 I Ma

  4. Slide 4: Adopting safety first principle – health measures across clusters

    ADOPTING SAFETY FIRST PRINCIPLE – HEALTH MEASURES ACROSS CLUSTERS COVID-19 Task Force Regular deep cleaning and Educating and disinfection, thermal informing Godrejites screening, and hand sanitisers Business Responding to Daily dashboard Continuity Plan tracking and mock COVID-19 drills in factorie

  5. Slide 5: Adopting safety first principle – health measures across clusters

    ADOPTING SAFETY FIRST PRINCIPLE – HEALTH MEASURES ACROSS CLUSTERS 5 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  6. Slide 6: Community service

    COMMUNITY SERVICE GODREJ GROUP EARMARKS INR 50 SUPPLY OF ESSENTIALS SPREADING AWARENESS CRORE ▪ Project EMBED teams partnering with local health & family welfare bodies to spread awareness about ▪ Godrej Group earmarks an initial INR ▪ Distribution of food packets to contract COVID-19, along with ed

  7. Slide 7: Community service

    COMMUNITY SERVICE REDUCTION IN HAND SANITISER PRICE MASK PRODUCTION INSURANCE COVERAGE AND PAUSE IN SOAPS PRICE HIKE ▪ In public interest and in line with government regulations, we have reduced the price of our Godrej protekt sanitiser (50 ml bottle) from Rs. 75/- to Rs. 25/- ▪ Despite the rise in

  8. Slide 8: #EmergeStronger playbook

    #EMERGESTRONGER PLAYBOOK Created a playbook on three pillars of ‘Restart’, ‘Recover/bounce back’ and ’Retool for a new normal’ RESTART BOUNCE BACK RETOOL ▪ Safeguard lives and livelihoods: ▪ Drive core and new category ▪ Changing consumer behaviour ▪ Employers, distributors and innovations, channel

  9. Slide 9: Portfolio well placed to drive growths even in the current environment

    PORTFOLIO WELL PLACED TO DRIVE GROWTHS EVEN IN THE CURRENT ENVIRONMENT India Indonesia GAUM Consolidated Essential + VFM category Impacted category 9 I GCPL I Performance Update 4Q FY20 I May 13, 2020 *VFM stands for Value for money

  10. Slide 10: Hygiene category could be the new household insecticide category

    HYGIENE CATEGORY COULD BE THE NEW HOUSEHOLD INSECTICIDE CATEGORY Expect full range of health & hygiene to India get launched in near future Indonesia Argentina Chile Kenya, SA and US 10 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  11. Slide 11: The year of household insecticide resurgence

    THE YEAR OF HOUSEHOLD INSECTICIDE RESURGENCE  Our portfolio and brand equity have never been this stronger  Play and win the full Household Insecticide opportunity in India and Indonesia – burning, electrics, personal and non-mosquito portfolio  Drive significant competitive advantage from troubl

  12. Slide 12: Performance Update agenda

    PERFORMANCE UPDATE 1 Current Business Update 2 Executive Summary - Key Highlights 3 Business Overview – India 4 Business Overview – International 5 Appendix 12 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  13. Slide 13: 4QFY20 financial performance

    4QFY20 FINANCIAL PERFORMANCE Consolidated India International Growth y-y Business Business Business Net Sales – Reported (12%) (18%) (5%) Volume (15%) Net Sales – Constant Currency (11%) (18%) (2%) EBITDA (18%) (23%) (6%) EBITDA – Constant Currency (15%) (23%) Flat Net Profit – Reported (75%) (73%)

  14. Slide 14: Exceptionals and one-offs – 4QFY20

    EXCEPTIONALS AND ONE-OFFS – 4QFY20 4QFY20 4QFY19 Consolidated India International Consolidated India International Net Profit - Reported 230 240 (10) 935 907 28 Exceptional (post tax): Restructuring cost in LAT AM & GAUM 3 - 3 9 - 9 Escrow release, forex impact on gains from divestment of Europe bus

  15. Slide 15: Bridge between reported to operating EBITDA

    BRIDGE BETWEEN REPORTED TO OPERATING EBITDA India International Indonesia GAUM Others 4QFY20 Reported EBITDA Margin 27.9% 16.3% 32.8% 3.4% 7.8% Business support charges, Royalty & (3.6) 3.6 1.5 1.9 0.3 Technical fees (₹ crore) 4QFY20 Adjusted EBITDA Margin 27.6% 16.6% 33.1% 3.8% 8.0% 4QFY19 Adjusted

  16. Slide 16: Key balance sheet data

    KEY BALANCE SHEET DATA Particulars Units March 31, 2020 March 31, 2019 Working Capital ex-Cash* ₹ crore 286 272 Working Capital* Days 11 10 Cash & Equivalents ₹ crore 1,407 1,376 Debt denominated in INR ₹ crore 317 - Debt denominated in USD ₹ crore 3,035 (USD 402 m) 3,160 (USD 455 m) Debt denominate

  17. Slide 17: Performance Update agenda

    PERFORMANCE UPDATE 1 Current Business Update 2 Executive Summary - Key Highlights 3 Business Overview – India 4 Business Overview – International 5 Appendix 17 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  18. Slide 18: Gaining market shares in otherwise weak performance

    GAINING MARKET SHARES IN OTHERWISE WEAK PERFORMANCE  Steady demand till the outbreak of COVID-19. Complete pause on sales due to disruption of both back end and front end supply chain in the last fortnight of March 20, resulting in sales decline of 18% (Volume decline of 15%)  Secondary sales decl

  19. Slide 19: Gaining market shares in otherwise weak performance

    GAINING MARKET SHARES IN OTHERWISE WEAK PERFORMANCE Sales Growth India Business ₹ crore year-on-year Household Insecticides 463 (16)% Soaps 313 (23)% Hair Colours 131 (23)% Other Categories 169 (7)% Unbranded and Exports 84 (18)% Total 1,159 (18)% Sales and trade promotion spends, etc. to be 70 (21)

  20. Slide 20: Market share gains in soap continues

    MARKET SHARE GAINS IN SOAP CONTINUES  Sales decline of 23% accelerated due to loss of sales in the last fortnight of March 20 due to COVID-19 outbreak; usually high growth period with the onset of summer season  Continue to gain market shares (60 bps gain in value and 100 bps gain in volume share

  21. Slide 21: Cinthol brand equity to be leveraged into health & hygiene

    CINTHOL BRAND EQUITY TO BE LEVEREGED TO EXPAND FURTHER INTO HEALTH & HYGIENE All Cinthol soaps to have a ‘99.9% germ protection’ ticker Cinthol Health+ range Health+ Handwash 21 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  22. Slide 22: Market share gain in household insecticide continues

    MARKET SHARE GAIN IN HOUSEHOLD INSECTICIDE CONTINUES  Sales decline of 16% accelerated due to loss of sales in later part of March, which marks the onset of high mosquito infestation in North India  Continue to gain market shares in overall category including incense sticks (90 bps gain in value s

  23. Slide 23: Gaining market shares in hair colours too

    GAINING MARKET SHARES IN HAIR COLOURS TOO  Growths impacted by general slowdown in hair colour category due its discretionary nature and consumers stretching consumption  Gaining market share in Hair Colours over last few months  Godrej Expert Rich Crème clocks its highest ever value market share

  24. Slide 24: Introduced Goodness.me - certified organic products for baby

    INTRODUCED GOODNESS.ME - A RANGE OF CERTIFIED ORGANIC PRODUCTS FOR BABY 24 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  25. Slide 25: Performance Update agenda

    PERFORMANCE UPDATE 1 Current Business Update 2 Executive Summary - Key Highlights 3 Business Overview – India 4 Business Overview – International 5 Appendix 25 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  26. Slide 26: Performance in international business

    PERFORMANCE IN INTERNATIONAL BUSINESS • International business reported constant currency sales decline of 2% • Adjusted EBITDA margin of 16.6%; decline of 30 bps y-y 1,140 1,123 200 1,120 -5% 190 -6% 190 1,100 1,080 1,069 180 178 1,060 170 1,040 1,020 160 1,000 150 980 960 140 940 130 Q4FY19 Q4FY20

  27. Slide 27: 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 449 9% 6% GAUM 484 (16)% (13)% Others* 136 1% 23% Total Net Sales 1,069 (5)% (2)% GAUM includes Africa, USA and Middle East *Others include Latin Ameri

  28. Slide 28: Overall margins maintained largely driven by Indonesia

    OVERALL MARGINS MAINTAINED LARGELY DRIVEN BY INDONESIA 33% Adjusted EBITDA Margin 8% 4% Indonesia GAUM Others year-on-year 210 bps (670) bps 670 bps change GAUM includes Africa, USA and Middle East 28 I GCPL I Performance Update 4Q FY20 I May 13, 2020 Others include Latin America and SAARC

  29. Slide 29: Continued growth momentum in Indonesia

    CONTINUED GROWTH MOMENTUM IN INDONESIA WITH MID SINGLE DIGIT CONSTANT CURRENCY SALES GROWTH  Sales growth of 6% in constant currency terms driven by Household Insecticides and Baby Wipes  Gained market share in Household Insecticide  Adjusted EBITDA margin expanded by 210 bps led by cost saving i

  30. Slide 30: Weak sales performance in GAUM cluster

    WEAK SALES PERFORMANCE IN GAUM CLUSTER  Sales declined by 13% in constant currency terms driven by underperformance across clusters on the back of COVID outbreak; Africa sales declined by 15% in constant currency terms  Sales in West Africa marginally improved, Southern Africa recorded a marginal

  31. Slide 31: Performance Update agenda

    PERFORMANCE UPDATE 1 Current Business Update 2 Executive Summary - Key Highlights 3 Business Overview – India 4 Business Overview – International 5 Appendix 31 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  32. Slide 32: Temporarily deferring outlook for FY21

    TEMPORARILY DEFERRING OUTLOOK FOR FY21  Driven by progression of COVID-19 and related uncertainties, temporarily deferring the outlook  #EMERGESTRONGER Playbook to drive growths during the year 32 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  33. Slide 33: 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,

  34. Slide 34: Shareholding pattern

    SHAREHOLDING PATTERN Others, 7.5% DII, 3.1% FII, 26.2% First State Promoter, Baytree 63.2% Investments (Mauritius) PTE Ltd Arisaig Partners Others Blackrock Vanguard Government of Singapore Genesis Emerging LIC Markets Fund Aberdeen Capital Group 34 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  35. Slide 35: We remain laser focused on executing our key priorities

    WE REMAIN LASER FOCUSED ON EXECUTING OUR KEY PRIORITIES Get back growth  Sustain and Improve market share in core categories  Accelerate new categories to build additional growth vectors  Invest in disruptive innovations  Transform GTM to capitalize on channel shifts Relentless execution  Harne

  36. Slide 36: 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 36 I GCPL I Performance Update 4Q FY20 I May 13, 2020

  37. Slide 37: 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

  38. Slide 38: 38 I GCPL I Performance Update 4Q FY20 I May 13, 2020

    38 I GCPL I Performance Update 4Q FY20 I May 13, 2020

Godrej Consumer Products — Q4 FY2020 Earnings Presentation on 6ix