Q1 2009-10 Performance Update GCPL

8/7/2019 Q1 2009-10 Performance Update GCPL

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InternationalOperations

Quarterly Update: Q1 2009-10

SoapsHair

ColoursLiquid

DetergentsToiletries


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Contents

Performance Highlights - Consolidated

Business Review - Domestic

GCPL Financials & Ratios - Stand Alone

International Operations.


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Performance Highlights Q1 2009-10

Topline growth of 21%. Strong growth in both domestic at 22% and

international business at 20%

Strong recovery in hair colour market share from 33.7% in exitFY09 to 34.8% in June 2009

Soap market shares go beyond 10% in June 2009

Consolidated PAT improves significantly to Rs.69.7 crore with 78%growth


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PAT (Rs. Crore)

69.7

39.1

0

25

50

75

Q1 0910 Q1 0809

PBT (Rs. Crore)

87.6

48.7

0

30

60

90

Q1 0910 Q1 0809

PBDIT (Rs. Crore)

96.6

58.8

0

25

50

75

100

Q1 0910 Q1 0809

FinancialHighlights - Consolidated

NetSales (Rs. Crore)

438.9

361.6

0

100

200

300

400

500

Q1 0910 Q1 0809

21 % 64 %

80%78 %


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Financial Highlights - Consolidated

E S ( nn alised s.)

10.

6.5

.0

.0

12.0

Q10910 Q10

09

67 %


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Ratios - Consolidated

Consolidated Q1 0910 Q1 0809

A&P / Sales 10% 9%

PBDIT / Sales 22% 16%

PBT / Sales 20% 13%

PAT / Sales 16% 11%

PBDIT margin improves by 600 bps

Increased A&P spends towards brand building initiatives - A&P increased by26% to Rs.43.3 crore as compared to Rs.34.3 crore in Q1 0809.

Tax rate higher on account of higher MAT rate on domestic operations


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Business Review - Domestic

Q1 FY 2009-10


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Q1 FY 2009-10 Scenario: Domestic

Industry Scenario

FMCG sector growth continues to be strong

Vegetable oil prices are at lower levels as compared to FY 0809.

Rupee strengthened versus the USD in Q1 2009-10

GCPL Performance

Industry Growth

(AC

ielsen Off Take)

GCPL Standalone

(Sales Growth)

Q1 0910 Q1 0910

Toilet Soaps 10.6% 27.4%

Hair Colours 14.2% 20.2%

*Off take in value terms @ MRP


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Q1 Highlights

Soaps

Highest ever quarterly sales in soaps

Significant increase in market share; market share for June 2009 is 10.1%

Launch of Godrej No.1 Lime & Aloe Vera variant

Hair Colours

Highest ever quarterly revenue

Good recovery in hair colour market share from 33.7% in exit FY09 to

34.8% in June 2009

Godrej Nupur Mehendi re-launched in a new & improved formulation

Toiletries

Cinthol launches Rainstorm & Unleash Deo Sprays


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Sales Growth (Standalone)

Tolet Soa

s (

s. Crore)

233.

13.3

0

50

100

150

200

250

Q10910 Q10809

Har Colo

r (

s. Crore)

7

.

62.2

0

20

40

60

80

Q10910 Q10809

Liquid

eterents (

s. Crore)

1.

1.6

0

1

2

3

4

Q10910 Q10809

Toileteries (s. Crore)

21.320.0

0

6

12

18

24

Q10910 Q10809

20 %27 %

23 %

7 %


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Soaps - Revenue & Market Share

8

!

8

8

"

4

4

# $8

# $4# $ %# $ %

# $ &

% '

& ' '

& % '

( ' '

( % '

) &

0

1

' # ) (

0

1

' # ) 2

0

1

' # )4

0

1

' # ) &

0

1

& '

Revenue

Rs

3

4

rore

5

5

6

8

#

& '

& &

MarketShare

7

8

9

Re v enue s Marke t @ A are

Source: AC Nielsen data % for All India value MS

Market shares from Q1 FY09 have been revised by AC Nielsen. The revised shares have been reported.

Market Share is 9.8 % for Q1 2009-10


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Hair Colours - Revenue & Market Share

69.3

62.

B

C

1.

9

57.0

7

C

.

D

35.5

33.E

3F.0

3 F . F3

F.9

0

20

40

60

80

G1

H

I

09G

2H

I

09G

3H

I

09G P

H

I

09G

1H

I

10

Revenue(Rs.

Crore)

22

26

30

34

38

MarketShare(%)

Revenues Mk Q sha R e

Market Share is 34.4 % for Q1 2009-10

Source: AC Nielsen data % for All India value MS

Market shares from Q1 FY09 have been revised by AC Nielsen. The revised shares have been reported.


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GCPL Monthly Market Share Value Trend

10.1

3S . T

9.59. T9.69.59. U

3S.

U3S.133.733. T

3 S .6

0

5

10

15

20

25

30

35

S

0

Jan-09 Feb-09 Mar-09V

pr-09 May-09 Jun-09

ValueMarketShare(%)

SoapW X

air ColourW

Soap Y

air Colour

Y


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Key Q1 Initiatives

Thrust to improve rural reach

Strong innovations in both soap & hair colour

Significant increase in brand investment

Building a brighter organization to drive growth


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Events / Recognitions

GCPL ranked 15th in Indias Best Companies to Work For survey 2009

conducted by Great Place to Work Institute, India & Economic Times.GCPL ranked 1st in the FMCG category of this survey.

Godrej Expert awarded the Most Trusted Brand 2009 in the hair dye /hair colour category for the third consecutive year in the ReadersDigest Asia Trusted Brands survey.

ICRA reaffirms SCG1 rating to the Stakeholder Value & Governancepractices of GCPL. The rating implies that in ICRAs current opinion,the company belongs to the Highest Category on the compositeparameters of stakeholder value creation and management &

corporate governance practices.

ICRA reaffirms CGR 2+ rating to the Corporate Governance practicesof GCPL.


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Acquisition of 49% stake in Godrej Sara Lee Limited

In May 2009, the Board of directors of Godrej Consumer Products approved the

proposed acquisition of 49% stake in Godrej Sara Lee Limited

The proposed acquisition will be through the merger of Godrej ConsumerBizPrivate Limited (GCBPL) and Godrej Hygiene Care Private Limited (GHCPL)[100% subsidiaries of Godrej & Boyce Manufacturing Co. Ltd & GodrejIndustries Limited respectively] into Godrej Consumer Products Limited.

Currently, GCBPL and GHCPL hold 29% and 20% respectively in Godrej Sara Lee

Limited (GSL).

Appointed date of the merger will be June 1, 2009 and pursuant to themerger, assets and liabilities of GCBPL and GHCPL will be transferred to GCPL.

Upon merger, GCPL will issue its 10 shares to the shareholders of GCBPL forevery 11 shares and 10 shares to the shareholders of GHCPL for every 11

shares.

The proposed merger is subject to approval of the Court & other authorities.


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Godrej SCA Hygiene 100% subsidiary of GCPL

GCPL has acquired the foreign JV partners share w.e.f 1st

April 2009. Godrej SCA Hygiene Limited is now a 100%

subsidiary of GCPL.

Godrej SCA Hygiene will continue to own and distribute the

profitable Snuggy brand

Q1 2009-10: Net Sales is Rs.3.1 crore; PAT is Rs.(0.4) crore


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Financials & Ratios

GCPL Standalone


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PAT (Rs. Crore)

60.3

3

a

.3

0

20

40

60

80

Q1 0910 Q1 0809

PBT (Rs. Crore)

b3.0

3c.

a

0

20

40

60

80

Q1 0910 Q1 0809

PBDIT (Rs. Crore)

b d .6

a

6.2

0

20

40

60

80

Q1 0910 Q1 0809

FinancialHighlights - Standalone

NetSales (Rs. Crore)

33 c . d

2b b

.b

0

100

200

300

400

Q1 0910 Q1 0809

22 % e 0 %

f g % e 6 %


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Q1 FY 09-10 Sales Mix (Standalone)

Soahs

i9

p

q

r

-s t

od'su

p

vai

t

w

olox t

u u

p

y

oileteties

i

p

i

ets1

p


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Dividend Q1 FY 09-10

Q4 Dividend announced

Dividend per Share Re.1

Dividend % 100%

Total outlay (including tax on distributed profits) Rs.30.07 crore

Dividend % till date for 2009-10 100%

Dividend payout % YTD PAT (Standalone) 49.87%


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Balance Sheet (Standalone)

Liabilities (Rs. Crore)Liabilities (Rs. Crore) 3030--JunJun--0909

Net Worth 597.17

Other Liabilities 14.72

Total 611.89

Assets (Rs. Crore)Assets (Rs. Crore) 3030--JunJun--0909

Net Fixed Assets 169.08

Investment in Subsidiaries 95.26

Investment Other

Cash & Bank Balance (including Rights investment of Rs.309.84 crore)

50.04

318.07

Net Current Assets (20.56)

Total 611.89


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Funds Flow (Standalone)

Q1 09-10

(Rs. Crore)

SOURCESSOURCES

Internal Accruals

Cash & Bank

Working capital changes

94.03

26.50

9.79

Total 130.32

APPLICATIO SAPPLICATIO S

Borrowing from Banks 52.85

Investment in subsidiaries

Investment in Mutual Funds

4.87

42.54

Dividend payout 30.06

Total 130.32


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Cost Structure (Standalone)

Amount

in Rs. Crore

Q1

0910

% of

Sales

Q1

0809

% of

SalesMaterials Cost 152.7 44.9% 157.6 56.8%

Staff Cost 30.5 9.0% 15.6 5.6%

Depreciation 3.9 1.1% 4.6 1.7%

Advt & Publicity 28.7 8.5% 22.1 7.9%

Other Expenses 59.8 17.6% 45.7 16.5%

Interest & Fin. Charges 1.7 0.5% 2.2 0.8%

Provision for Taxation 12.7 3.7% 5.1 1.8%

PAT 60.3 17.7% 34.3 12.3%

Net Sales 339.8 100.0% 277.7 100.0%

Other Income 10.5 3.1% 9.5 3.4%


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Ratios - Standalone

Q1 0910 Q1 0809

A&P / Sales

PBDIT / Sales

8%

23%

8%

17%

PBT / Sales 21% 14%

PAT / Sales 18% 12%

NWC / Sales (days) (19) (18)

Fixed Asset TO Ratio 8.0 5.2

ROCE 49% 25%

RONW 40% 24%


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International OperationsKey Highlights

Kinky Group

Proprietary Ltd.

Godrej Global

Mid-East FZE

International business continues to do well under a challenging

environment contributes 21% to topline.

Kinky sales grew by 22%, Rapidol by 11% & Keyline by 18% over Q1FY09 (in Foreign Currency )


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Godrej Consumer Products Mauritius Ltd- Performance(Holding company ofKinky Group (Pty) Ltd)

Date of Acquisition: 01-Apr-2008

Rs. Crore Q1 0910 Q1 0809

et Sales 16.2 10.8

PBIT 2.8 2.3

Interest 1.6 1.3

PBT 1.2 1.0

Tax 0.9 0.8

PAT 0.3 0.2

Opened 2 new Kinky Owned stores, taking the total number of stores to 24


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Godrej etherlands BV- Consolidated* Performance

Business grew at 18% (in Foreign Currency) despite recession in the UK economy

Date of Acquisition: 31-Oct-200

Rs. Crore Q1 0910 Q1 0809et Sales 66.9 61.2

PBIT 10.9 10.7

Interest 0.4 0.9

PBT 10.5 9.8Tax 3.3 3.2

PAT 7.2 6.6


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Rapidol Pty Ltd-Performance

Rs. Crore Q1 0910 Q1 0809

Net Sales 13.9 11.6

PBIT 3.4 1.8

PBT 3.5 2.0

Tax 1.0 0.6

PAT 2.5 1.4

Date of Acquisition: 01-Sep-2006

Successful launch of Inecto Semi Permanent range of colours


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Godrej Global Mid-East (GGME)

Rs. Crore Q1 0910 Q1 0809

Net Sales 4.0 2.9

PBIT 0.2 0.1

PBT 0.2 0.1

Tax - -

PAT 0.2 0.1

Date of Acquisition: 01-Oct-2007

Business grew at 17% (in Foreign Currency) over Q1 FY 2008-09


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Thank You

Q1 2009-10 Performance Update GCPL

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