Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q4 FY2022 Earnings Presentation
37 slides from Godrej Consumer Products's earnings presentation, May 19, 2022
Slide 1: Q4FY2022 Investor and Analyst Performance Update
Q4FY2022 Investor and Analyst Performance Update 19 May, 2022
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: Sales growth of 7% (2-year CAGR 17%); double-digit sales growth in full year
Sales growth of 7% (2-year Consolidated Sales growth 7% (7% CC) India Sales growth 9% CAGR 17%); double-digit 2-year CAGR 17% (18% CC) 2-year CAGR 21% sales growth in full year (2-year CAGR 11%) Consolidated EBITDA growth (9)%* 1 Strong performance in Personal Care 2 Steady growth in India 9% (2-yea
Slide 6: Strong performance in Personal Care and weak performance in Home Care
1 Strong performance in Personal Care and weak performance in Home Care HOME CARE PERSONAL CARE Performance Q4FY2022 (7)% 18% (INR) Performance FY2022 (INR) 3% 17% 6
Slide 7: Steady growth in India, Africa, USA & Middle East; weak Indonesia
2 Steady growth in India 9% (2-year CAGR 21%), Africa, USA & Middle East 14% CC (2-year CAGR 24%) and Latin America & SAARC 26% CC (2-year CAGR 40%); weak performance in Indonesia (16)% CC (2-year CAGR -7%) Latin America Africa, USA & Middle East Indonesia India Performance Performance Q4FY2022 26%*
Slide 8: Home Care declines by 7% (2-year CAGR 8%)
3 Home Care declines by 7% (2-year CAGR 8%) • Household Insecticides: Weak performance driven by Indonesia, relatively muted season in India and a high base; 2-year CAGR in high single digits • Air Fresheners: Steady performance; consumption picking up gradually Disease prevention advertising HIT ae
Slide 9: Strong growth momentum continues in Personal Care; 18% growth
4 Strong growth momentum continues in Personal Care; 18% growth (2-year CAGR 22%) • Personal Wash & Hygiene: Growth driven by strong Personal Wash performance in India and Nigeria • Hair Colours: Strong performance led by gradual recovery • Hair Care: Continued robust growth in Africa, USA & Middle
Slide 10: Consolidated EBITDA margins at 18.1% (9% degrowth)
5 Consolidated EBITDA margins at 18.1% (9% degrowth); margins decrease by 320 bps year-on-year • Consolidated EBITDA decline of 9% • EBITDA margins in India at 23.6%; expanded by 100 bps year-on-year, while gross margins declined by ~410 bps (due to higher commodity inflation), however, the trend is
Slide 11: Among BW Businessworld list of India's top sustainable companies
6 Among BW Businessworld list of India’s top 10 sustainable companies for second year in a row • GCPL is a water positive, plastic neutral, and zero waste-to-landfill company. This means, we capture more water than we take, we take back plastic waste equivalent to all plastic packaging we use in our
Slide 12: Financial Performance Update
FINANCIAL PERFORMANCE UPDATE
Slide 13: Q4 FY2022: Financial Performance
Q4 FY2022: Financial Performance Consolidated India Growth (year-on-year) Business Business Net Sales (Reported) 7% 9% Net Sales (Constant Currency) 7% - EBITDA (9%)* 14% Net Profit (Reported) (1%) 67% Net Profit (Without exceptional and one-off items) (4%) 39% 13 Note: *EBITDA adjusted for one time e
Slide 14: Q4 FY2022: Exceptional and One-off Items
Q4 FY2022: Exceptional and One-off Items Consolidated Business Q4 FY2022 Q4 FY2021 Net Profit (Reported) 363 366 Exceptionals (Post tax) Restructuring cost in Latin America & GAUM 0.1 1.9 Brand and goodwill impairment in GAUM & Latin America (adjusted for Deferred Tax) 47.0 32.2 Profit from divestmen
Slide 15: Q4 FY2022: Steady growth in India, Africa, USA & Middle East
Q4 FY2022: Steady growth in India (2-year CAGR 21%), Africa, USA & Middle East (2-year CAGR 24% CC); weak performance in Indonesia (2-year CAGR -7% CC) Constant Sales Growth Geography Currency Growth ( crore) (Year-on-year) (Year-on-year) India 1,604 9% - Indonesia 401 (15)% (16)% Africa, USA and Mi
Slide 16: Q4 FY2022: Bridge between Reported and Operating EBITDA
Q4 FY2022: Bridge between Reported and Operating EBITDA Africa, USA Latin America India Indonesia & Middle East & SAARC Q4FY22 Reported EBITDA Margin 24.1% 21.2% 1.1% 10.5% Business support charges, Royalty & (8.3) 1.5 5.5 1.2 Technical fees ( crore) Q4FY22 Operating EBITDA Margin 23.6% 21.6% 4.6%*
Slide 17: Q4 FY2022: Healthy Balance Sheet
Q4 FY2022: Healthy Balance Sheet Particulars Units Mar 31, 2022 Mar 31, 2021 Working Capital ex-Cash* crore 979 337 Working Capital* Days 29 11 Cash & Equivalents crore 2,123 1,332 Total Debt crore 1,608 1,768 Debt denominated in INR crore - 0.1 Debt denominated in USD crore 1,142 (USD 150 m) 1,557
Slide 18: India Business Update
INDIA BUSINESS UPDATE
Slide 19: Steady sales growth
Steady sales growth Financial performance Operating performance • Sales growth of 9% driven by pricing; 2-year CAGR of 21% • Mixed performance in Home Care and Personal Care • Gaining shares in ~85% of our categories • EBITDA margins in India at 23.6%; expanded by 100 bps year- • Continue to strengt
Slide 20: Strong momentum in Personal Care; weak growth in Home Care
Strong momentum in Personal Care; weak growth in Home Care Sales Q4 Growth Category 2-year CAGR ( crore) (Year-on-year) Home Care 724 (2)% 15% Personal Care 744 20% 27% Total Branded Sales 1,468 8% 21% Unbranded and Exports 136 21% 31% Total Net Sales 1,604 9% 21% Volume Growth _ (3)% 12% 20
Slide 21: Home Care (1/3): Seeding category development initiatives
Home Care (1/3): Seeding in category development initiatives to drive sustainable growth • Household Insecticides delivered a soft performance on the back of a relatively muted season and high base (2-year CAGR in double-digits) • Continue to deepen penetration and gained market share by 50 bps on M
Slide 22: Home Care (2/3): Gradual recovery in Air Fresheners continues
Home Care (2/3): Gradual recovery in Air Fresheners continues • Air Fresheners continues to witness steady growth; 2-year CAGR in double-digits • Gained market share of 130 bps on MAT basis • Aer Power Pocket continues to perform well and drive new trials; launched a new campaign ‘If bathrooms could
Slide 23: Home Care (3/3): Strong performance in Fabric Care
Home Care (3/3): Strong performance in Fabric Care • Fabric Care witnessed strong growth; 2-year CAGR in double-digits • Continued with digital communications centred around winter specialist brand
Slide 24: Personal Care (1/2): Double-digit growth in Personal Wash & Hygiene
Personal Care (1/2): Double-digit growth in Personal Wash & Hygiene • Personal Wash & Hygiene continued momentum with double-digit sales growth; 2-year CAGR in double-digits • Continue to gain market share and deepen penetration in Soaps led by micro marketing initiatives • Gained market share by 60
Slide 25: Personal Care (2/2): Witnessing recovery in Hair Colours
Personal Care (2/2): Witnessing recovery in Hair Colours • Hair Colours growth was steady; 2-year CAGR in double-digits • Godrej Expert Rich Crème continues to perform well with market share gains driven by strong marketing campaigns and influencer programmes • In line with our strategy of driving c
Slide 26: Indonesia Business Update
INDONESIA BUSINESS UPDATE
Slide 27: Weak performance in Indonesia
Weak performance in Indonesia • Sales dropped by 16% (constant currency); sales decline excluding Hygiene (Saniter) was 10% (constant currency) • EBITDA margins at 21.6%, sequentially higher, decreased by 1,380 bps year-on-year due to higher commodity inflation, adverse mix, scale deleverage and a h
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 14% (constant currency); 2-year constant currency CAGR of 24% • EBITDA margins* decreased by 630 bps year-on-year driven by lag between increase in commodity cost and end consumer price
Slide 30: Environmental, Social, and Governance Update
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE
Slide 31: Our ESG targets for FY2025 and Q3 FY2022 performance
Our ESG targets for FY2025 and Q3 FY2022 performance Environment* Vision Goals for FY2025 Performance update • Community waste management projects with local municipalities diverted Influence Ensure efficient waste management systems for 3 municipalities in India 7,300 kg of dry waste from landfills
Slide 32: Our ESG targets for FY2025 and Q3 FY2022 performance
Our ESG targets for FY2025 and Q3 FY2022 performance Environment* Vision Goals for FY2025 Performance update Lead in 45% reduction in GHG emission intensity (to be revised based on SBTi) 42% reduction in GHG emission intensity sustainability and carbon neutrality for Scope-1&2 from FY11 baseline act
Slide 33: Our ESG targets for FY2025 and Q3 FY2022 performance
Our ESG targets for FY2025 and Q3 FY2022 performance Social* Vision Goals for FY2025 Performance update 705 beauty-entrepreneurs upskilled. Average incomes increase of Equip communities Empower 200,000 women in beauty skills, across 15%. 681 beautypreneurs took loans of which 35% recovered. INR 9 wi
Slide 34: Appendix
APPENDIX
Slide 35: Shareholding Pattern
Shareholding Pattern First State Others 6.9% DII Temasek 5.7% Blackrock FII 24.2% Others Vanguard Promoters 63.2% Government of Singapore Capital Group Fidelity Arisaig Partners Genesis Emerging Government Markets Fund Pension Fund Global 35
Slide 36: Contact Us
Contact Us Institutional investors Retail investors Pratik Dantara R Shivshankar Email: Pratik.dantara@godrejcp.com Email: r.shivshankar@godrejcp.com Tel: +91 22 2519 4876 Tel: +91 22 2519 4359 36
Slide 37: Thank you
Thank you www.godrejcp.com
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