Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q4 FY2021 Earnings Presentation
38 slides from Godrej Consumer Products's earnings presentation, May 11, 2021
Slide 1: Q4FY2021 Investor and Analyst Performance Update
Q4FY2021 Investor and Analyst Performance Update 11 May, 2021
Slide 2: Key Highlights
KEY HIGHLIGHTS
Slide 3: Third consecutive quarter of strong double-digit sales growth
Third consecutive quarter Consolidated India Consolidated Performance Q4FY2021 Sales growth Sales growth EBITDA growth of strong double-digit sales 27% (29% CC) 35% 21% growth; double-digit sales Performance FY2021 11% (12% CC) 14% 14% growth of 11% in FY2021 Double-digit growth in Household Insecti
Slide 4: Double-digit growth in Household Insecticides, Hygiene and Value For Money
1 Double-digit growth in Household Insecticides, Hygiene and Value For Money products HOUSEHOLD HYGIENE VALUE FOR MONEY OTHERS INSECTICIDES Performance Q4FY2021 (INR) 28% 38% 27% 17% Performance FY2021 (INR) 15% 24% 14% -8%
Slide 5: Sales growth by geography
2 Third consecutive quarter of strong double-digit sales growth; India 35%; Africa, USA & Middle East 36% (CC); Latin America & SAARC 54% (CC); Indonesia 4% (CC) Latin America Africa, USA & Middle East Indonesia India Performance Performance Q4FY2021 54%* (CC) 36% (CC) 4% (CC) 30%* (INR) 30% (INR) 5
Slide 6: Household Insecticides delivers 34% growth in India; 28% globally
3 Household Insecticides delivers 34% growth in India; 28% globally • Consumers do not want to take any chances with their health; vigilance about mosquitoes and protection against malaria and dengue has gone up • Continue to pivot advertising more towards disease prevention • Full portfolios across
Slide 7: Strong growth momentum continues in Hygiene (including Soaps)
4 Strong growth momentum continues in Hygiene (including Soaps) of 38% South Africa Protekt Magic Indonesia Saniter Ecosense Powder to Liquid Handwash Powder to Liquid Handwash Bidex Magic Villeneuve Magic Chile Argentina Powder to Liquid Soap Powder to Liquid Soap
Slide 8: Value For Money products delivers 27% growth
5 Value For Money products delivers 27% growth Godrej Expert Rich Darling Empress Crème in India range in Nigeria 8
Slide 9: Consolidated EBITDA margins at 21%; margins decrease by 110 bps
6 Consolidated EBITDA margins at 21% (21% growth); margins decrease by 110 bps • Consolidated EBITDA growth of 21% • EBITDA margins in International business at 18.9%; increase of 230 bps year-on-year driven by • Consolidated EBITDA margins at 21.2%; decrease of 110 scale leverage in Africa, USA and
Slide 10: Navigating the second wave of COVID-19 in India
7 Navigating the second wave of COVID-19 in India Business environment Supporting our communities • Implementing learnings from the first wave; better prepared to Adopted a safety-first principle across our ecosystem: navigate any supply chain disruptions • supporting team members, their families an
Slide 11: Financial Performance Update
FINANCIAL PERFORMANCE UPDATE
Slide 12: Q4 FY2021: Financial Performance
Q4 FY2021: Financial Performance Consolidated India Growth (year-on-year) Business Business Net Sales (Reported) 27% 35% Net Sales (Constant Currency) 29% - EBITDA 21% 10% Net Profit (Reported) 59% 4% Net Profit (Without exceptional and one-off items) 20% 13% 12
Slide 13: Q4 FY2021: Exceptional and One-off Items
Q4 FY2021: Exceptional and One-off Items Consolidated Business Q4 FY2021 Q4 FY2020 Net Profit (Reported) 366 230 Exceptional (Post tax) Restructuring cost in Latin America & GAUM 1.9 3.0 Escrow release – gain on divestment of UK business - (0.3) Brand and goodwill impairment in GAUM & Latin America
Slide 14: Q4 FY2021: Strong double-digit growth in India, USA & Middle East
Q4 FY2021: Third consecutive quarter of strong double-digit growth in India, USA & Middle East; gradual recovery in Indonesia Constant Sales Growth Geography Currency Growth (₹ crore) (Year-on-Year) (Year-on-Year) India 1,466 35% - Indonesia 470 5% 4% Africa, USA and Middle East 630 30% 36% Latin Am
Slide 15: Q4 FY2021: Bridge between Reported to Operating EBITDA
Q4 FY2021: Bridge between Reported to Operating EBITDA Africa, USA Latin America India Indonesia & Middle East & SAARC Q4FY21 Reported EBITDA Margin 23.1% 35.0% 10.1% 2.9% Business support charges, Royalty & (7.7) 1.6 5.0 1.1 Technical fees (₹ crore) Q4FY21 Operating EBITDA Margin 22.6% 35.4% 10.9%
Slide 16: Q4 FY2021: Key Balance Sheet data
Q4 FY2021: Key Balance Sheet data Particulars Units Mar 31, 2021 Mar 31, 2020 Working Capital ex-Cash* ₹ crore 337 286 Working Capital* Days 11 11 Cash & Equivalents ₹ crore 1,332 1,407 Total Debt ₹ crore 1,768 3,518 Debt denominated in INR ₹ crore 0.1 317 Debt denominated in USD ₹ crore 1,557 3,035
Slide 17: India Business Update
INDIA BUSINESS UPDATE
Slide 18: Third consecutive quarter of strong double-digit sales growth
Third consecutive quarter of strong double-digit sales growth Financial performance Operating performance • Sales growth of 35%; strong momentum in all months of quarter • Broad-based growth across all categories • EBITDA margins in India at 22.6%, decrease of 500 bps year-on- • Strong growth led by
Slide 19: Strong sales growth led by Soaps, Household Insecticides
Strong double-digit sales growth led by Soaps, Household Insecticides; recovery in Hair Colours Sales Q4 Growth FY21 Growth (₹ crore) (Year-on-Year) (Year-on-Year) Household Insecticides 620 34% 16% Soaps 442 41% 15% Hair Colours 164 25% 3% Other Categories 207 23% 9% Unbranded and Exports 113 35% 1
Slide 20: Strong performance in Household Insecticides
Strong performance in Household Insecticides • Sales growth of 34% in the quarter; steady sales growth of 16% in FY2021 • Broad-based growth across premium formats (aerosols, electrics and non-mosquito portfolio) and burning formats • Driving premiumisation and innovation-led growth with the launch
Slide 21: Strong performance in Soaps
Strong performance in Soaps • Third consecutive quarter of double-digit sales growth of 41%; steady sales growth of 15% in FY2021 • Continue to gain market share driven by micro marketing initiatives • New launches in Health are scaling up well • Navigating high input cost through calibrated price i
Slide 22: Steady momentum in Hair Colours continues
Steady momentum in Hair Colours continues • Sales growth of 25% driven by uptick in overall category growth; full year growth of 3% • Continue to gain market share • Godrej Expert Rich Crème continues to perform well driven by strong marketing campaign • Godrej Expert Easy 5 Minute Shampoo Hair Colo
Slide 23: Godrej protekt scaled up into full Hygiene portfolio
Godrej protekt scaled up into full Hygiene portfolio 23
Slide 24: Pivoting other categories for more relevance
Pivoting other categories for more relevance Home Fabric Travel Bathroom Air Freshener Air Freshener Bathroom and Liquid Detergent + Hygiene and Protection + Sanitiser Floor Cleaners + Fabric Sanitiser 24
Slide 25: Indonesia Business Update
INDONESIA BUSINESS UPDATE
Slide 26: Gradual recovery in Indonesia; mid-single digit sales growth
Gradual recovery in Indonesia; mid-single digit sales growth Financial performance • Delivered sales growth of 4% (constant currency); 2- year constant currency CAGR of 5% • Recovery impacted by adverse macroeconomic factors • Growth in the current quarter driven by steady performance in Household I
Slide 27: Africa, USA & Middle East Business Update
AFRICA, USA & MIDDLE EAST BUSINESS UPDATE
Slide 28: Africa, USA & Middle East delivers double-digit profitable sales growth
Africa, USA & Middle East delivers double-digit profitable sales growth Financial performance • Third consecutive quarter of double-digit sales growth; 36% (constant currency) • EBITDA margin increased by 710 bps year-on- year driven by scale leverage and cost saving initiatives Country and Category
Slide 29: Latin America & SAARC Business Update
LATIN AMERICA & SAARC BUSINESS UPDATE
Slide 30: Sales growth momentum continues
Sales growth momentum continues Financial performance • Sales grew by 54% (constant currency) • Overall margins decreased due to upfront marketing investments (~700 bps) 30
Slide 31: Historical Home and Personal Care (HPC) Data
HISTORICAL HOME AND PERSONAL CARE (HPC) DATA
Slide 32: Historical HPC data (India)
Historical HPC data (India) Particulars (INR cr) Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Home Care 504 780 831 552 570 802 877 736 Personal Care 730 653 579 458 744 775 688 619 Total Branded Sales 1,233 1,433 1,410 1,010 1,314 1,576 1,565 1,355 Others incl. Exports 57 57 82 79 44 74
Slide 33: Appendix
APPENDIX
Slide 34: Actively championing social responsibility
Actively championing social responsibility 23% of the promoter Creating a more inclusive Aligned with the UN’s Our efforts to mitigate holdings in the Godrej and greener world through Sustainable Development climate change have Group is held in trusts that Godrej Good & Green Goals, and the needs of
Slide 35: Shareholding Pattern
Shareholding Pattern First State Others 7.1% Temasek DII 3.0% Capital Group FII 26.6% Others Blackrock Promoters 63.2% Arisaig Partners Vanguard Government of Singapore Genesis Emerging Fidelity Markets Fund Kotak 35
Slide 36: 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 36
Slide 37: 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 38: Thank you
Thank you www.godrejcp.com
Godrej Consumer Products — Q4 FY2021 Earnings Presentation on 6ix