Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q1 FY2025 Earnings Presentation
43 slides from Godrej Consumer Products's earnings presentation, Aug 7, 2024
Slide 1: Investor Note cover letter to 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 August 7, 2024 BSE Limited Corporate Relati
Slide 2: Q1 FY2025 Performance Update
Q1 FY2025 Performance Update August 7, 2024
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
Slide 4: The Goodness Manifesto
The Goodness Manifesto OUR OUR BiE CREATE delight! PURPOSE Bringing the goodness of health and beauty to VALUES consumers in emerging markets Lead through category Funded by OUR development simplification STRATEGY OUR OPERATING 1 Less is more; Much 2 Consumer first, 3 Think local, 4 Tomorrow 5 Peopl
Slide 5: Building blocks of our strategy
Building blocks of our strategy Lead through category Funded by development simplification Relevance Access Fewer SKUs Fewer people Fewer Simpler Availability Trials operations processes 4
Slide 6: Financial Performance Update
FINANCIAL PERFORMANCE UPDATE
Slide 7: Key highlights
Key highlights 8% 7% 13% Consolidated India* Indonesia EBITDA UVG^ UVG^ growth 6 *Organic | ^Underlying Volume Growth
Slide 8: Steady performance
Steady performance Growth (year-on-year) Consolidated Business India Business Organic Underlying Volume Growth 2% 8% Net Sales -3% (-1%*) 9% (6%*) Net Sales (Constant Currency) 9% (11%*) - EBITDA 13% 8% Net Profit (Reported) 41% (6%) Net Profit (without exceptional and one-off items) 14% 5% 7 *Organic
Slide 9: Currency depreciation impacted strong underlying sales growth
Currency depreciation impacted strong underlying sales growth Sales Growth Constant Currency Growth Geography ( crore) (Year-on-year) (Year-on-year) Reported 2,140 9% India - Organic 2,091 6% Indonesia 465 3% 11% Reported 543 (36%) (23%) Africa, USA & Middle East Organic 543 (25%) (10%) Latin Americ
Slide 10: Strong EBITDA margin expansion across international geographies
Strong EBITDA margin expansion across international geographies Africa, USA Latin America Consolidated India Indonesia & Middle East & SAARC Q1FY25 Operating EBITDA margin* 21.9% 24.7% 23.3% 14.4% 4.8% Change in EBITDA margin +310 (20) +400 +660 +520 (bps) (y-y) Change in EBITDA + Working Media +340
Slide 11: Net profit reconciliation statement
Net profit reconciliation statement Consolidated Business Q1 FY2025 Q1 FY2024 (A) Net Profit (Reported)* 451 319 (B) Exceptionals (Post tax): Restructuring costs 19.2 2.8 Stamp duty and other costs - 57.0 Tax impact on dividend received from subsidiary - 34.0 Others - 0.6 (C) Net Profit (Without except
Slide 12: India Business Update
INDIA BUSINESS UPDATE
Slide 13: Home Care (1/4): Stable performance in Household Insecticides
Home Care (1/4): Stable performance in Household Insecticides; launched new Goodknight Liquid Vaporiser • Household Insecticides volume growth stable at low-single digit, impacted by severe heatwaves • Launched new Goodknight Liquid Vaporiser, with our exclusive RNF molecule, across India (refer App
Slide 14: Home Care (2/4): Launched the all-new HIT Spray Matic
Home Care (2/4): Launched the all-new HIT Spray Matic; automatic ‘Set-and-Forget’ mosquito solution • HIT Spray Matic - India’s only registered automatic mosquito spray; most convenient instant kill mosquito solution available in India • Launched in July in select channels at a premium price point o
Slide 15: Home Care (3/4): Air Fresheners delivers consistent double-digit growth
Home Care (3/4): Air Fresheners delivers consistent double-digit growth • Air Fresheners continue to consistently deliver double-digit volume growth • Continue to gain market share and enjoy market leadership • Aer O continues to perform significantly ahead of expectations 14
Slide 16: Home Care (4/4): Strong performance in Liquid Detergents
Home Care (4/4): Strong performance in Liquid Detergents • Fabric Care delivered strong double-digit volume growth • After a strong performance, Godrej Fab has been scaled up nationally in select channels and in general trade in select states • Genteel continues to deliver robust performance and has
Slide 17: Personal Care (1/3): Personal Wash delivers steady performance
Personal Care (1/3): Personal Wash delivers steady performance • Personal Wash delivers stable volume growth at low single-digit; continue to gain market share • Magic Handwash continues to deliver strong double-digit volume growth and gain share • Cinthol Foam Body Wash pilot launched in select sta
Slide 18: Personal Care (2/3): Hair Colour delivers soft performance
Personal Care (2/3): Hair Colour delivers soft performance • Hair Colour volumes were flat; we continue to gain market share • Overall, the category was impacted by lesser wedding dates in this quarter which is expected to normalise in the coming quarters • Godrej Expert Rich Crème access packs cont
Slide 19: Personal Care (3/3): Park Avenue and KamaSutra performance on track
Personal Care (3/3): Park Avenue and KamaSutra performance on track • Post portfolio simplification and rationalisation of SKUs, Park Avenue and KamaSutra continue to deliver a healthy performance; delivered sales of 153 crore • Sexual Wellness is delivering ahead of expectations and continues to ga
Slide 20: High single-digit reported sales growth
High single-digit reported sales growth Sales Growth Category ( crore) (Year-on-year) Home Care 815 8% Personal Care 1,248 6% Total Branded 2,063 7% Unbranded and Exports 77 121% Total Net Sales 2,140 9% 19
Slide 21: International Business Update
INTERNATIONAL BUSINESS UPDATE
Slide 22: Indonesia sees strong volume growth and margin expansion
Indonesia sees strong volume growth and margin expansion • Constant Currency sales growth of 11% and INR sales • Margin improvement continues growth of 3%; INR sales impacted by significant currency depreciation • EBITDA margin of 23.3%, up ~400 bps year-on-year • Delivered UVG of 7% Growth (y-y) EB
Slide 23: Strong performance across categories in Indonesia
Strong performance across categories in Indonesia • Stella volume grew in strong double-digit led by focused media and marketing interventions • Stella Electric Diffuser launched in Q1 FY25; received strong initial response from both trade and consumers • HIT delivered stable low-single digit volume
Slide 24: Africa, USA & Middle East offtakes sustained; impact due to one-offs in base
Africa, USA & Middle East offtakes sustained; impact due to one-offs in base • Organic sales declined by 10% in constant currency terms; performance in INR terms was further impacted by the devaluation of Naira • Volume decline led by one-time sell-in in base and streamlining of trade inventory lead
Slide 25: Continue to focus on improving absolute INR profit in Africa, USA & Middle East
Continue to focus on improving absolute INR profit in Africa, USA & Middle East EBITDA ( crore) EBITDA margin • 14.4% 78 7.8% Funded by 66 simplification Fewer SKUs Fewer people Fewer Simpler operations processes Q1FY24 Q1FY25 24
Slide 26: Appendix 1
APPENDIX 1
Slide 27: Liquid Vaporiser has huge headroom to grow
Liquid Vaporiser has huge headroom to grow Household Insecticides Liquid Vaporiser penetration in India penetration in India • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 11111111111111111111 11111111111111111111 • • • • • • • • • • • • • • • • • • • • iiiii iiiiiii
Slide 28: Launching India's most efficacious Liquid Vaporiser
is launching India’s most efficacious Liquid Vaporiser Effective ~2x more effective formulation Residual effect Effect lasts upto 2 hours after machine is switched off* Flash Pricing Liquid. ,,,_.,t Vapori ser ~~-\'~ Similar price for enhanced product *When the machine is used for 2 hours in Flash mo
Slide 29: Powered by exclusive RNF molecule
Powered by exclusive RNF molecule RNF ~2x • I more effective GCPL exclusivity Made in India for medium term molecule 28
Slide 30: Better than other Liquid Vaporisers in the market
Better than other Liquid Vaporisers in the market Other Liquid Vaporiser Liquid Vaporiser ~2x Efficacy x RNF Molecule TFT, MFT Residual impact upto 2 hours* X *When the machine is used for 2 hours in Flash mode 29
Slide 31: ood
ood Knight a =~ Effect lasts for up to * = hours* “Basis standard lab test conditions.
Slide 32: Molecule change had led to significant outperformance in the past
Molecule change had led to significant outperformance in the past Electrics Market Share Molecule Molecule change - RNF Gold Flash change - TFT Xpress Merger completion ------------------ Number 2 player 2008 2012 2016 2019 2024 31
Slide 33: Goodknight continues to innovate and protect India for over 40 years
Goodknight continues to innovate and protect India for over 40 years •• •• • • • •• • •• • • • • • •• •• • • • •• • •• • • • •••• • • •• • • • • • • • •• •• • • • • • • • • • • •••••••• ••• • • • •••••• • • ••• • • •••••• ••••• • •• •• • • •• •• - •• • •• • •• • •• •• • • • •• •• ••• ••• • • •••• ••
Slide 34: Appendix 2
APPENDIX 2
Slide 35: Reported EBITDA margin to Operating EBITDA margin bridge
Reported EBITDA margin to Operating EBITDA margin bridge Africa, USA Latin America Consolidated India Indonesia & Middle East & SAARC Q1FY25 Reported EBITDA Margin 21.9% 25.0% 22.9% 13.7% 5.0% Business support charges, royalty - (5.1) 1.7 3.8 (0.4) and technical fees ( crore) Q1FY25 Operating EBITDA
Slide 36: Environmental, Social, and Governance Update
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE
Slide 37: Our ESG targets for FY2025-26 and Q4 FY2024 performance
Our ESG targets for FY2025-26 and Q4 FY2024 performance Environment* Vision Goals for FY2025-26 Performance update Influence Ensure efficient waste management systems for 7 municipalities in India, Ongoing community waste management projects in 5 municipalities sustainable diverting over 8,000 MT of
Slide 38: Our ESG targets for FY2025-26 and Q4 FY2024 performance
Our ESG targets for FY2025-26 and Q4 FY2024 performance Environment* Vision Goals for FY2025-26 Performance update Lead in 45% reduction in GHG emission intensity and carbon neutrality for 41% reduction in GHG emission intensity sustainability Scope 1&2 from FY11 baseline action 40% reduction in spe
Slide 39: Our ESG targets for FY2025-26 and Q4 FY2024 performance
Our ESG targets for FY2025-26 and Q4 FY2024 performance oOo Social* cc:P Vision Goals for FY2025 Performance update Equip communities Empower 60,000 women in beauty skills, across Trained, upskilled and reached out to 24,565 women beauty with skills that emerging markets globally entrepreneurs, youn
Slide 40: Shareholding Pattern
SHAREHOLDING PATTERN
Slide 41: Shareholding pattern as on June 30, 2024
First Sentier Others 6.1% Blackrock DII 8.9% Vanguard Others FII 22.0% Capital Group Promoters GIC 63.0% Government Pension Fund Global Kotak Aditya Birla Sun Life ICICI Prudential Life SBI Insurance As on June 30, 2024 40
Slide 42: 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 Aditya Kasat Email: aditya.kasat@godrejcp.com Tel: +91 22 2519 6328 41
Slide 43: Thank you
Thank you EPoulube = GB wwwaodrejcp.com _Linked [fi]
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