Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q2 FY2020 Earnings Presentation
27 slides from Godrej Consumer Products's earnings presentation, Nov 6, 2019
Slide 1: Performance Update - 2Q FY20
Performance Update - 2Q FY20 November 6, 2019
Slide 2: Performance Update
PERFORMANCE UPDATE 1 Executive Summary - Key Highlights 2 Business Overview – India 3 Business Overview – International 4 Appendix 2 I GCPL I Performance Update 2Q FY20 I November 06, 2019
Slide 3: 2QFY20 Financial Performance
2QFY20 FINANCIAL PERFORMANCE Consolidated India International Growth y-y Business Business Business Net Sales – Reported (1%) 1% (4%) Volume 7% Net Sales – Comparable* 2% 1% 4% Net Sales – Constant Currency – Comparable* 3% 1% 7% EBITDA – Comparable* 9% 2% 30% EBITDA – Constant Currency – Comparable
Slide 4: Exceptional and One-Off Items
EXCEPTIONAL AND ONE-OFF ITEMS 2QFY20 2QFY19 Consolidated India International Consolidated India International Reported net profit 414 335 78 578 296 280 Exceptional (post tax): Restructuring cost in LAT AM and GAUM 9 - 9 (1) (1) Release of escrow and forex impact on gains from divestment of Europe b
Slide 5: Bridge Between Reported to Operating EBITDA
BRIDGE BETWEEN REPORTED TO OPERATING EBITDA India International Indonesia GAUM Others 2QFY20 Reported EBITDA Margin 26.9% 15.3% 24.0% 11.4% 4.3% Business support charges, Royalty & Technical fees (₹ crore) (8.7) 8.7 2.0 5.4 1.2 2QFY20 Adjusted EBITDA Margin 26.3% 16.1% 24.5% 12.3% 5.3% 2QFY19 Adjust
Slide 6: Key Balance Sheet Data
KEY BALANCE SHEET DATA September 30, September 30, Particulars Units June 30, 2019 2019 2018 Working Capital ex-Cash* ₹ crore 457 477 347 Working Capital* Days 17 18 14 Cash & Equivalents ₹ crore 1,330 1,618 1,101 Debt denominated in INR ₹ crore 423 298 273 Debt denominated in USD ₹ crore 2,903 (USD
Slide 7: Performance Update
PERFORMANCE UPDATE 1 Executive Summary - Key Highlights 2 Business Overview – India 3 Business Overview – International 4 Appendix 7 I GCPL I Performance Update 2Q FY20 I November 06, 2019
Slide 8: Volume Led Profitable Sales Growth
VOLUME LED PROFITABLE SALES GROWTH India delivers 7% volume growth; sequential pick in volume (Q1FY20 volume growth of 5%) Volume growth led by new product launches, effective marketing campaigns and consumer offers EBIDTA growth of 2% (margin expansion of 40 bps y-y) 1% 2% 1,481 1,490 392 384
Slide 9: Robust Volume Growth
ROBUST VOLUME GROWTH Sales Growth India Business ₹ crore year-on-year Household Insecticides 683 4% Soaps 491 (4)% Hair Colours 160 2% Other Categories 179 8% Unbranded and Exports 62 4% Total 1,575 1% Sales and trade promotion spends, etc. to be (85) 18% netted off from Sales as per Ind AS Sales 1,
Slide 10: Strong Volume Growth in Soaps
STRONG VOLUME GROWTH IN SOAPS Higher than mid single digit volume growth; price offs and consumer offers resulting in sales decline of 4% Continue to gain market shares (MAT Sep19 gain of 60 bps) Focus on micro marketing initiatives with regional launches Godrej No 1 Chandan Abhyang Snaan in M
Slide 11: Gradual Recovery in Household Insecticides
GRADUAL RECOVERY IN HOUSEHOLD INSECTICIDES Higher than mid single digit volume growth resulting in 4% value growth Price off in Liquid Vapourizer driving growth and market share gains Illegal incense sticks salience plateauing at 11-12% over last 8 months; Home Insect Control Association (HICA
Slide 12: Soft Performance in Hair Colour
SOFT PERFORMANCE IN HAIR COLOUR Growths impacted by general slowdown in hair colour category; high base and soft performance in Godrej Expert Rich Crème Relaunching Expert Crème hair colour Godrej Expert Easy 5 minute shampoo hair colour in Southern states scaling up well; launched nationally
Slide 13: Launched Direct to Consumer Website
LAUNCHED DIRECT TO CONSUMER WEBSITE www.godrejaer.com www.awesomemen.cinthol.com 13 I GCPL I Performance Update 2Q FY20I November 06, 2019
Slide 14: Performance Update
PERFORMANCE UPDATE 1 Executive Summary - Key Highlights 2 Business Overview – India 3 Business Overview – International 4 Appendix 14 I GCPL I Performance Update 2Q FY20 I November 06, 2019
Slide 15: Mixed Performance in International Business
MIXED PERFORMANCE IN INTERNATIONAL BUSINESS International business delivers constant currency sales growth* of 7% Adjusted EBITDA* margin of 16.1% increases by 320 bps year-on-year 1,144 4% 184 30% 1,097 141 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Adjusted Sales* Adjusted EBITDA* *Q2FY19 base quarter adjust
Slide 16: 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 425 17% 13% GAUM 591 (6%) (2%) Others* 128 24% 38% Total Net Sales 1,144 4% 7% GAUM includes Africa, USA and Middle East Others include Latin America a
Slide 17: Margin Expansion Across Clusters
MARGIN EXPANSION ACROSS CLUSTERS Adjusted EBITDA Margin* 24% 12% 5% Indonesia GAUM Others year-on-year 50 bps 380 bps 470 bps change GAUM includes Africa, USA and Middle East Others include Latin America and SAARC *Q2FY19 base quarter adjusted for Europe divestment w.e.f Sept 18; SLOB provision of ₹
Slide 18: Delivered Double Digit Profitable Sales Growth in Indonesia
DELIVERED DOUBLE DIGIT PROFITABLE SALES GROWTH IN INDONESIA Sales growth of 13% in constant currency terms; broad based across Household insecticides, Air fresheners and Baby wipes Continue to gain market share in Household insecticide Focus on stepping up innovation momentum across categories
Slide 19: Mixed Performance in GAUM Cluster
MIXED PERFORMANCE IN GAUM CLUSTER Sales decline of 2% in constant currency terms South Africa and Rest of Africa & Middle East (ROAME) cluster performed well on the back of new product developments West Africa cluster reported a slowdown in sales In Dry hair (57% of the overall sales), gaine
Slide 20: Performance Update
PERFORMANCE UPDATE 1 Executive Summary - Key Highlights 2 Business Overview – India 3 Business Overview – International 4 Appendix 20 I GCPL I Performance Update 2Q FY20 I November 06, 2019
Slide 21: 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,
Slide 22: GCPL Selected as Index Component of DJSI
GCPL SELECTED AS AN INDEX COMPONENT OF THE DOW JONES SUSTAINABILITY INDICES (DJSI) We are one of the twelve Indian companies to be selected as a member of DJSI in Sep’19 Over 800 companies from emerging markets were assessed out of which 98 companies including 12 from India made it to the DJSI Emerg
Slide 23: Shareholding Pattern
SHAREHOLDING PATTERN Others, 6.8% DII, 2.3% FII, 27.8% Promoter, 63.2% First State Temasek Arisaig Partners Others GIC Blackrock Vanguard Capital Genesis Emerging Markets Fund Fidelity Aberdeen 23 I GCPL I Performance Update 2Q FY20 I November 06, 2019 As on 30 September, 2019
Slide 24: We Remain Laser Focused on Executing Our Key Priorities
WE REMAIN LASER FOCUSED ON EXECUTING OUR KEY PRIORITIES #1 Extending leadership in our core categories and geographies #2 Accelerating innovation and building purposeful brands #3 Leveraging digital #4 Enhancing go-to-market #5 Making our supply chain best-in-class #6 Fostering an inclusive, agile a
Slide 25: 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 25 I GCPL I Performance Update 2Q FY20 I November 06, 2019
Slide 26: 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 27: Thank You for Your Time and Consideration
HY THANK YOU FOR YOUR TIME AND CONSIDERATION
Godrej Consumer Products — Q2 FY2020 Earnings Presentation on 6ix