Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q2 FY2021 Earnings Presentation
34 slides from Godrej Consumer Products's earnings presentation, Nov 5, 2020
Slide 1: Q2FY2021 Investor and Analyst Performance Update
Q2FY2021 Investor and Analyst Performance Update 5 November, 2020
Slide 2: Key Highlights
KEY HIGHLIGHTS
Slide 3: Strong performance; all clusters deliver positive sales growth
Strong performance; all clusters deliver positive sales growth Consolidated sales growth 11% (11% CC) Consolidated EBITDA growth 19% 83% of global portfolio India Sales growth 11% India EBITDA growth 17% grows at 17% All clusters deliver positive sales growth; India 11%, 1 83% of global portfolio co
Slide 4: Performance: 83% of global portfolio delivering 17% growth
1 83% of our global portfolio comprises Household Insecticides, Hygiene and Value For Money products, delivering 17% growth 83% contributing to 17% growth HOUSEHOLD HYGIENE VALUE FOR MONEY OTHERS INSECTICIDES Performance Q2FY2021 (INR) 6% 27% 22% - 9%
Slide 5: Performance: all clusters deliver positive sales growth
2 All clusters deliver positive sales growth; India 11%, Indonesia 3% (CC), Africa, USA & Middle East 10% (CC), Latin America & SAARC 46% (CC) Latin America Africa, USA & Middle East Indonesia India Performance Q2FY2021 46%* (CC) 10% (CC) 3% (CC) 41%* (INR) 10% (INR) 5% (INR) 11% (INR) 5 Note: *Incl
Slide 6: Steady performance in Household Insecticides, 6% growth globally
3 Continue to drive steady performance in Household Insecticides, delivering 6% growth globally • Consumers do not want to take any chances with their health; vigilance against mosquitos and protecting themselves against malaria and dengue has gone up • Full portfolios across formats and price point
Slide 7: Strong growth momentum in Hygiene and Value For Money products
4 Strong growth momentum continues in Hygiene (including Soaps) of 27%; strong Value For Money products growth of 22% Darling Saniter in Empress range Indonesia in Nigeria Protekt in India Godrej Expert Rich Crème in India 7
Slide 8: Serving our communities
5 Serving our communities Godrej Group: Partnerships 50 crore fund to and community support relief efforts in support across India (~90% deployed) geographies • Food relief and hygiene kits for contract workers and local communities around manufacturing plants in 14 countries TV Digital and over 44,
Slide 9: Financial Performance Update
FINANCIAL PERFORMANCE UPDATE
Slide 10: Q2 FY2021: Financial Performance
Q2 FY2021: Financial Performance Consolidated India Growth (Year-on-Year) Business Business Net Sales (Reported) 11% 11% Net Sales (Constant Currency) 11% - EBITDA 19% 17% Net Profit (Reported) 11% 5% Net Profit (Without exceptional and one-off items) 19% 16% 10
Slide 11: Q2 FY2021: Exceptional and One-off Items
Q2 FY2021: Exceptional and One-off Items Consolidated Business Q2 FY2021 Q2 FY2020 Net Profit (Reported) 458 414 Exceptional (Post tax) Restructuring cost in Latin America and Africa, USA & Middle East 0.1 9.2 Forex impact on reversal of financial payout liability in USA 0.3 - Escrow release, forex i
Slide 12: Q2 FY2021: India and Africa, USA & Middle East record strong growth
Q2 FY2021: India and Africa, USA & Middle East record strong growth; Indonesia delivers soft performance Constant Sales Growth Geography Currency Growth ( Crore) (Year-on-Year) (Year-on-Year) India 1,650 11% 11% Indonesia 445 5% 3% Africa, USA and Middle East 652 10% 10% Latin America and SAARC 180
Slide 13: Bridge between Reported to Operating EBITDA
Q2 FY2021: Bridge between Reported to Operating EBITDA Africa, USA Latin America India Indonesia & Middle East & SAARC Q2FY21 Reported EBITDA Margin 28.3% 25.4% 10.7% 19.3% Business support charges, Royalty & (7.0) 1.8 4.6 0.6 Technical fees ( crore) Q2FY21 Operating EBITDA Margin 27.9% 25.8% 11.4%
Slide 14: Q2 FY2021: Key Balance Sheet data
Q2 FY2021: Key Balance Sheet data Particulars Units Sep 30, 2020 Sep 30, 2019 June 30, 2020 Working Capital ex-Cash* crore 130 457 213 Working Capital* Days 5 17 8 Cash & Equivalents crore 913 1,330 1,292 Total Debt crore 2,036 3,546 3,023 Debt denominated in INR crore 125 423 70 Debt denominated in
Slide 15: India Business Update
INDIA BUSINESS UPDATE
Slide 16: Strong performance led by Soaps; steady Household Insecticides
Strong performance led by Soaps; steady performance in Household Insecticides Financial performance Operating performance • Sales growth of 11% • Strong growth led by Soaps • Sequential recovery in Hair Colour • EBITDA margins at 27.9%, • Robust scale up of Hygiene portfolio • Doubling down on chemi
Slide 17: India sales by category
Strong performance led by Soaps; steady performance in Household Insecticides Sales Growth ( Crore) (Year-on-Year) Household Insecticides 712 4% Soaps 582 18% Hair Colours 152 (5%) Other Categories 200 12% Unbranded and Exports 76 22% Total 1,722 9% Sales and trade promotion spends, etc. 72 (16%) (T
Slide 18: Steady performance in Household Insecticides
Steady performance in Household Insecticides • Sales growth of 4% partially impacted by supply issues due to regional lockdowns • Underlying consumer demand continues to be robust • Pivoting advertising more towards disease prevention • Goodknight Gold Flash liquid vaporiser continues to receive an
Slide 19: Strong performance in Soaps
Strong performance in Soaps • Sales growth of 18% driven by market share gains • Continued focus on micro marketing initiatives to drive growth • New launches in Health scaling up well 19
Slide 20: Gradual recovery in Hair Colours
Gradual recovery in Hair Colours • Sales decline of 5% due to discretionary nature of the category • Sequential improvement continues with market share gains • Godrej Expert Rich Crème continues to perform well by leveraging Do-It-Yourself (DIY) trends through influencers, resulting in strong market
Slide 21: Godrej Protekt scaled up into full Hygiene portfolio
Godrej Protekt scaled up into full Hygiene portfolio 21
Slide 22: Pivoting other categories for more relevance
Pivoting other categories for more relevance Travel Home Fabric Air Freshener Bathroom Air Freshener Liquid Detergent Bathroom and + Sanitiser + Hygiene and Protection + Fabric Sanitiser Floor Cleaners 22
Slide 23: Indonesia Business Update
INDONESIA BUSINESS UPDATE
Slide 24: Indonesia delivers 5% INR sales growth
Indonesia delivers 5% INR sales growth (3% constant currency growth) Financial performance • Sales growth of 3% (constant currency) impacted by large scale social restrictions in last fortnight of September • Sales got impacted due to down stocking by select modern trade retailers Saniter, the new r
Slide 25: Africa, USA & Middle East Business Update
AFRICA, USA & MIDDLE EAST BUSINESS UPDATE
Slide 26: Robust recovery in Africa, USA & Middle East
Robust recovery in Africa, USA & Middle East Financial performance • Sales growth of 10% (constant currency) • EBITDA margin decreased by 110 bps year-on-year driven by higher salience of Braids Country and Category performance • Strong sales growth in South and West Africa • Witnessing strong perfo
Slide 27: Latin America & SAARC Business Update
LATIN AMERICA & SAARC BUSINESS UPDATE
Slide 28: Profitable, sustainable constant currency sales growth
Profitable, sustainable constant currency sales growth Financial performance • Sales grew by 46% (constant currency) • Latin America business recorded highest ever EBITDA margins of 21% in the last few years, driven by our cost saving programme • SAARC business continues to deliver healthy sales perf
Slide 29: Appendix
APPENDIX
Slide 30: Actively championing social responsibility
Actively championing social responsibility 23% of the promoter Creating a more inclusive Aligned with the UN’s holdings in the Godrej and greener world through Sustainable Development Group is held in trusts that Godrej Good & Green Goals, and the needs of invest in education, local communities envi
Slide 31: Shareholding Pattern
Shareholding Pattern First State Others 6.9% Temasek DII 3.1% Capital Group FII 26.8% Others Blackrock Promoters 63.2% Arisaig Partners Vanguard Kotak Government of LIC Genesis Emerging Singapore Markets Fund 31
Slide 32: Contact Us
Contact Us 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 32
Slide 33: 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 34: Thank you
Thank you www.godrejcp.com
Godrej Consumer Products — Q2 FY2021 Earnings Presentation on 6ix