Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q1 FY2024 Earnings Presentation
32 slides from Godrej Consumer Products's earnings presentation, Aug 7, 2023
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 August 07, 2023 BSE Limited Corporate Relat
Slide 2: Q1FY2024 Investor and Analyst Performance Update
Q1FY2024 Investor and Analyst Performance Update August 7, 2023
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 purpose and strategy
Our purpose and strategy Environmental, Business Purpose social, and aspiration governance (ESG) Bring the goodness of Drive penetration-led Become sustainability leaders, health and beauty to volume growth through influence sustainable consumption, consumers in category development and drive social
Slide 5: Committed to our strategy
Committed to our strategy Lead through category Funded by radical People and planet development simplification alongside profit 4
Slide 6: Lead through category development
+125% increase in Working Media Launched Aer O Car Air Fresheners Lead through category development We plan to invest around 900 crores in organic manufacturing capex over the next 18-36 months 5
Slide 7: Funded by radical simplification
Partnership with a national distributor in Nigeria is progressing well Reduced channel inventory in Indonesia Funded by radical simplification 6
Slide 8: People and planet alongside profit
People and planet alongside profit Launched Magic Floor Cleaner 7
Slide 9: Financial Performance Update
FINANCIAL PERFORMANCE UPDATE
Slide 10: Double-digit volume growth along with robust EBITDA performance
Double-digit volume growth along with robust EBITDA performance Growth (year-on-year) Consolidated Business India Business Reported Organic Reported Organic Underlying Volume Growth 10% 8% 12% 10% Net Sales (Constant Currency) 15% 13% - - Net Sales 10% 9% 9% 6% EBITDA 28% ~36% 21% ~32% EBITDA + Work
Slide 11: Broad-based sales performance across clusters
Broad-based sales performance across clusters Sales Growth Constant Currency Growth Geography ( crore) (Year-on-year) (Year-on-year) Reported 1,971 9% India - Organic 1,924 6% Indonesia 450 20% 15% Africa, USA and Middle East 847 9% 16% Latin America and SAARC 178 18% 79% Reported 3,418 10% 15% Tota
Slide 12: Strong margin expansion across key markets
Strong margin expansion across key markets Africa, USA Latin America India Indonesia & Middle East & SAARC Reported Organic Q1FY24 Reported EBITDA Margin 19.1% 11.4% 0.8% 25.2% 28.2% Business support charges, royalty and (5.1) (5.1) 1.8 3.5 (0.2) technical fees ( crore) Q1FY24 Operating EBITDA Margi
Slide 13: Exceptional and One-off Items
Exceptional and One-off Items Consolidated Business Q1 FY2024 Q1 FY2023 Net Profit (Reported) 319 345 Exceptionals (Post tax): Restructuring costs 2.8 1.8 Stamp duty and other costs (India) 57.0 - Tax impact on dividend received from subsidiary 34.0 - Others (Latin America) 0.6 (0.1) Net Profit (Witho
Slide 14: India Business Update
INDIA BUSINESS UPDATE
Slide 15: Double-digit volume growth momentum continues
Double-digit volume growth momentum continues • Double-digit UVG of 12% (Reported), 10% (Organic) Robust margin improvement (Reported) continues: • Gross Margin up 1,130 bps year-on-year • Home Care volume growth in teens and Personal Care (Organic) • Increase in Working Media investment by 125% yea
Slide 16: Healthy volume-led growth across categories
Healthy volume-led growth across categories Sales Growth Category ( crore) (Year-on-year) Home Care 752 14% Personal Care 1,109 2% Total Branded 1,861 6% Unbranded and Exports 62 1% Total Net Sales (Organic) 1,924 6% Personal Care (Inorganic) 48 - Total Net Sales (Reported) 1,971 9% 15
Slide 17: Home Care (1/2): Household Insecticides double-digit growth
Home Care (1/2): Household Insecticides continues double-digit growth momentum • Household Insecticides sustain double-digit volume and value growth • Performance led by strong growth in premium formats • Scaling up distribution of access packs of Goodknight Mini Liquid Vaporizer and HIT No-gas Spra
Slide 18: Home Care (2/2): Air Fresheners double-digit growth
Home Care (2/2): Consistently delivering double-digit growth in Air Fresheners • Air Fresheners continue to consistently deliver strong double-digit growth • Aer continues to gain share and enjoy market leadership • Performance led by robust growth in Aer Pocket, Aer Matic and Car Range • Continuing
Slide 19: Personal Care (1/2): Personal Wash volume-led growth
Personal Care (1/2): Personal Wash delivers healthy volume-led growth • Personal Wash delivers high-single digit volume growth; value growth in low-single digit as the benefit of lower input cost was passed on to consumers • Growth ahead of category led by effective media campaigns and micro marketi
Slide 20: Personal Care (2/2): Steady performance in Hair Colour
Personal Care (2/2): Steady performance in Hair Colour • Hair Colour grew in mid-single digits due to high base (launch of 15 Godrej Expert Crème access pack); 2-year CAGR in teens • Growth led by steady performance across formats • Scaling up distribution of the access pack of Godrej Selfie Shampoo
Slide 21: Integration of Park Avenue and KamaSutra brands on track
Integration of Park Avenue and KamaSutra brands on track • Primary sales were 48 crore and secondary sales were more than 2x of primary sales • Improvement in channel hygiene underway – reduced channel inventory and took stock returns • Kicked off category development initiatives backed by media inv
Slide 22: International Business Update
INTERNATIONAL BUSINESS UPDATE
Slide 23: Indonesia business delivers improved performance
Indonesia business delivers improved performance • Sales grew by 15% (constant currency) aided by structural initiatives taken last year • EBITDA margins at 19.5%, up 420 bps year-on-year led by reduction in trade promotions and scale leverage • EBITDA incl. Forex margin at 19.4%, up 410 bps year-on
Slide 24: Double-digit sales growth continues in Africa, USA & Middle East
Double-digit sales growth continues in Africa, USA & Middle East • Sales growth of 16% in constant currency terms • Performance in INR terms was impacted by the devaluation of NAIRA • Continue to deliver healthy double-digit growth in FMCG categories • EBITDA margins at 11.8%, up 350 bps year-on-yea
Slide 25: Environmental, Social, and Governance Update
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE
Slide 26: Our ESG targets for FY2025 and Q4 FY2023 performance
Our ESG targets for FY2025 and Q4 FY2023 performance Environment* Vision Goals for FY2025 Performance update Ongoing community waste management projects in 5 municipalities Influence Ensure efficient waste management systems for 7 municipalities in India sustainable diverting over 5,000 MT of waste f
Slide 27: Our ESG targets for FY2025 and Q4 FY2023 performance
Our ESG targets for FY2025 and Q4 FY2023 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 and 2 from FY11 baseline action 40% reduction in speci
Slide 28: Our ESG targets for FY2025 and Q4 FY2023 performance
Our ESG targets for FY2025 and Q4 FY2023 performance Social* Vision Goals for FY2025 Performance update Trained and upskilled 14,6733 women beauty entrepreneurs, young girls, and Equip communities Empower 200,000 women in beauty skills, across men in India and Africa in beauty and hair styling skill
Slide 29: Appendix
APPENDIX
Slide 30: Shareholding pattern
Shareholding pattern First State Others 6.7% Blackrock DII 6.9% Others Vanguard FII 23.2% GIC Promoters Capital Group 63.2% UTI SBI Life Insurance Kotak Government Pension ICICI Prudential Life Fund Global Insurance As on June 30, 2023 29
Slide 31: Contact Us
Contact Us Institutional investors Retail investors Tapan Joshi R Shivshankar Email: Tapan.joshi@godrejcp.com Email: r.shivshankar@godrejcp.com Tel: +91 22 2519 5433 Tel: +91 22 2519 4359 30
Slide 32: Thank you
Thank you www.godrejcp.com
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