Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q3 FY2024 Earnings Presentation
41 slides from Godrej Consumer Products's earnings presentation, Jan 31, 2024
Slide 1: Exchange filing cover letter
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 January 31, 2024 BSE Limited Corporate Rela
Slide 2: Q3FY2024 Investor and Analyst Performance Update
Q3FY2024 Investor and Analyst Performance Update January 31, 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: Our strategic narrative
Our strategic narrative OUR OUR PURPOSE Bringing the goodness of health and beauty VALUES to consumers in emerging markets Lead through category Funded by People and Planet OUR OUR development simplification alongside Profit VISION STRATEGY Delight 2 billion consumers by 2027 OUR OPERATING 1 Less is
Slide 5: Building blocks of our strategy
Building blocks of our strategy Lead through category Funded by People and planet development simplification alongside profit Innovation Relevance Simpler Sustainable Sustainable Less SKUs business model consumption footprint Leaner Optimised Performance Better Access Trials organisation manufacturing
Slide 6: Financial Performance Update
FINANCIAL PERFORMANCE UPDATE
Slide 7: Fundamentals being strengthened
Fundamentals being strengthened Growth (year-on-year) Consolidated Business India Business Underlying Volume Growth 8% (5%#) 12% (5%#) Net Sales 2% (-2%#) 9% (2%#) Net Sales (Constant Currency) 19% (15%#) - EBITDA* 16% 18% EBITDA* + Working Media 20% 25% Net Profit (Reported) 6% 3% Net Profit (without
Slide 8: Steady underlying sales growth marred by currency devaluations
Steady underlying sales growth marred by currency devaluations Sales Growth Constant Currency Growth Geography ( crore) (Year-on-year) (Year-on-year) Reported 2,160 9% India - Organic 2,021 2% Indonesia 466 8% 7% Africa, USA and Middle East 922 (8%) 14% Latin America and SAARC 99 (45%) 181% Reported
Slide 9: We continue to deliver a superior portfolio mix through targeted actions
We continue to deliver a superior portfolio mix through targeted actions… High margin countries growing faster High margin categories growing faster Middle East Indonesia South India Africa 8
Slide 10: This has aided significant EBITDA margin expansion
…this has aided significant EBITDA margin expansion Africa, USA Latin America Consolidated India Indonesia & Middle East & SAARC Q3FY24 Reported EBITDA* Margin 23.2% 30.0% 20.5% 10.9% (3.6%) Business support charges, royalty - (6.4) 1.7 4.3 0.4 and technical fees ( crore) Q3FY24 Operating EBITDA* Mar
Slide 11: Net profit reconciliation statement
Net profit reconciliation statement Consolidated Business Q3 FY2024 Q3 FY2023 (A) Net Profit (Reported) 581 546 (B) Exceptionals (Post tax): Restructuring costs 5.3 6.3 Others - 0.2 (C) Net Profit (Without exceptional and one-off items) (A+B) 586 553 (D) Deferred tax charge on brands purchased^ 26.5 0.
Slide 12: India Business Update
INDIA BUSINESS UPDATE
Slide 13: Home Care (1/4): Delivered steady performance in Household Insecticides
Home Care (1/4): Delivered steady performance in Household Insecticides • Household Insecticides volume growth stable at low-single digit • Non-mosquito portfolio continues to consistently perform significantly well • On track to turnaround HI – Launched Goodknight Agarbatti in January, additional a
Slide 14: Home Care (2/4): Launched Goodknight Agarbatti
Home Care (2/4): Launched Goodknight Agarbatti with an exclusive and close to 2x more effective molecule • Entering the ~ 1,200 crore incense stick market; primarily illegal • Goodknight Agarbatti - India’s only Government registered active based anti-mosquito legal agarbatti • Goodknight Agarbatti
Slide 15: Home Care (3/4): Double-digit growth in Air Fresheners
Home Care (3/4): Consistently delivering double-digit growth in Air Fresheners • Air Fresheners continue to consistently deliver double-digit volume growth • Aer continues to gain share and enjoy market leadership • Air Fresheners has close to doubled its salience over the last 2 years 14
Slide 16: Home Care (4/4): Strong entry in Liquid Detergent market
Home Care (4/4): Strong entry in the fast-growing Liquid Detergent market • Fabric Care delivered strong double-digit volume growth • Genteel and Ezee continue to deliver steady performance • Launched Godrej Fab Liquid Detergent in select markets at a category defining price of 99 per litre 15
Slide 17: Personal Care (1/2): Personal Wash delivers steady performance
Personal Care (1/2): Personal Wash delivers steady performance • Personal Wash delivers mid 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 16
Slide 18: Personal Care (2/2): Strong growth in Hair Colour
Personal Care (2/2): Strong growth in Hair Colour • Hair Colours volume grew in double-digit led by both Godrej Expert Rich Crème and Godrej Selfie Shampoo Hair Colour • Access packs have significantly outperformed in both Godrej Expert Rich Crème and Shampoo Hair Colour • Continue to gain market sh
Slide 19: Park Avenue and KamaSutra performance on track
Park Avenue and KamaSutra performance on track • Continuing the healthy sales run-rate delivered in Q2; clocked sales of 139 crore • Consumer focused investments behind working media increased by 5-8x • On track to achieve full-year ambition • Integration completed; cost synergies have started to fl
Slide 20: High single-digit reported sales growth
High single-digit reported sales growth Sales Growth Category ( crore) (Year-on-year) Home Care 1047 5% Personal Care 896 2% Total Branded 1,943 4% Unbranded and Exports 78 (21%) Total Net Sales (Organic) 2,021 2% Personal Care (Inorganic) 139 - Total Net Sales (Reported) 2,160 9% 19
Slide 21: International Business Update
INTERNATIONAL BUSINESS UPDATE
Slide 22: Indonesia sees strong volume growth and margin expansion continues
Indonesia sees strong volume growth and margin expansion continues • Constant Currency sales growth of 7% and INR sales • Margin improvement continues growth of 8% • EBITDA* margin of 20.9%, up 70 bps year-on-year • Delivered UVG of 9% Growth (y-y) EBITDA* margin (y-y) 9% 8% 20.9% 20.2% 7% CC Sales
Slide 23: Broad-based performance across categories in Indonesia
Broad-based performance across categories in Indonesia • Household Insecticides volume grew in strong double-digit led by aerosol and LV • Household Insecticides continue to gain market share and penetration; enjoy market leadership • Hair Colours recorded strong double-digit volume growth driven by
Slide 24: Emphasis on improving fundamentals despite volatility in Africa and Latin America
Emphasis on improving fundamentals despite volatility in Africa and Latin America ARS MT USh Volume INR Profit INR Cash Growth Growth Growth Currency and geopolitical volatility may Focus on strengthening continue in the near to medium term in business fundamentals on Africa and Latin America an ann
Slide 25: GAUM sees strong constant currency sales growth and EBITDA margin expansion
GAUM sees strong constant currency sales growth and EBITDA margin expansion • GAUM sales growth of 14% in constant currency terms; performance in INR terms was impacted by the devaluation of Naira • FMCG categories continue to grow in double-digits • EBITDA* margin at 11.4%, up 250 bps year-on-year
Slide 26: Reorganising in Africa on track
Reorganising in Africa on track Expect profitability to Simplifying Hair Fashion Multiple actions improve in the medium operations to a Royalty underway; target closure term; PAT to move from model in select markets is expected between ~ 0 to ~ 50 crore (largely in East Africa) Q4FY24 to Q1FY25 (exc
Slide 27: Latin America and SAARC impacted by Argentine Peso devaluation
Latin America and SAARC businesses impacted by significant Argentine Peso devaluation • LATAM business revenue has been severely impacted on account of the sharp devaluation in Argentine Peso, which has impacted nine months of revenue (due to hyper-inflation accounting). • This has resulted in negati
Slide 28: Appendix
APPENDIX
Slide 29: Incense Sticks is a large growing market dominated by illegal players
Incense Sticks is a large growing market dominated by illegal players >1,200 crs >10% ~35% Dominated by illegal players Size of market CAGR in last 3 years Penetration 28
Slide 30: GCPL launches India's only government registered active based anti-mosquito agarbatti
GCPL LAUNCHES INDIA’S ONLY GOVERNMENT REGISTERED ACTIVE BASED ANTI-MOSQUITO AGARBATTI
Slide 31: Goodknight Agarbatti, best placed to formalise the Incense Sticks market
Goodknight Agarbatti, best placed to formalise the Incense Sticks market Safe Effective Affordable India’s only government 2X more effective Affordable price point registered anti-mosquito molecule ( 10/pack) agarbatti 30
Slide 32: RNF molecule is 2x more effective; Exclusivity with GCPL
RNF* molecule is 2x more effective than any other registered molecule; Exclusivity with GCPL 2x more effective GCPL exclusivity for medium term Made in India molecule 31 *Renofluthrin
Slide 33: Goodknight continues to innovate and protect India for over 40 years
Goodknight continues to innovate and protect India for over 40 years 1 Meeting consumer needs across various use cases through innovative products 2 Offering products at various price points 32
Slide 34: Environmental, Social, and Governance Update
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE
Slide 35: Our ESG targets for FY2025 and Q2 FY2024 performance
Our ESG targets for FY2025 and Q2 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
Slide 36: Our ESG targets for FY2025 and Q2 FY2024 performance
Our ESG targets for FY2025 and Q2 FY2024 performance Environment* Vision Goals for FY2025 Performance update Lead in 45% reduction in GHG emission intensity and carbon neutrality for 48% reduction in GHG emission intensity sustainability Scope-1&2 from FY11 baseline action 40% reduction in specific
Slide 37: Our ESG targets for FY2025 and Q2 FY2024 performance
Our ESG targets for FY2025 and Q2 FY2024 performance Social* Vision Goals for FY2025 Performance update Equip communities Empower 200,000 women in beauty skills, across Trained, upskilled and reached out to 33,501 women beauty with skills that emerging markets globally entrepreneurs, young girls, an
Slide 38: Shareholding Pattern
SHAREHOLDING PATTERN
Slide 39: Shareholding pattern as on December 31, 2023
First Sentier Others 6.3% Blackrock DII 7.9% Vanguard Others FII 22.5% GIC Capital Group Promoters 63.2% ICICI Prudential Life Insurance Nippon UTI Government Pension Kotak Fund Global As on December 31, 2023 38
Slide 40: 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 39
Slide 41: Thank you
Thank you EPoutube = wwwaodrejcp.com _Linked [fi]
Godrej Consumer Products — Q3 FY2024 Earnings Presentation on 6ix