Quarterly Update: Q Soaps Hair Colours Liquid Detergents Toiletries Household Insecticides & Others International Operations
Contents Performance Highlights - Consolidated Business Review - Domestic GCPL Financials & Ratios - Stand Alone International Operations
Performance Highlights – Q Acquisition of 49% stake in Godrej Sara Lee Limited (GSLL) completed Topline growth of 65% after consolidation of Rs crore of GSLL sales: –Strong growth in GCPL domestic business at 27% –International business grew at 22% despite recession PBDIT margins improve by 800 bps Consolidated PAT improves significantly to Rs.93 crore with 168% growth Significant increase in soap market share from 9.6% in exit FY09 to 10.9% in September 2009 Highest ever soap market share for GCPL Hair Colour market share for September 2009 is 34.7% as against 33.7% in March 2009
Financial Highlights - Consolidated 65% 163% 172% 168% 43% 109% 123% 120%
Financial Highlights - Consolidated 89% 124%
Ratios - Consolidated ConsolidatedQ2 0910Q2 0809H1 0910H A&P / Sales9%7%9%8% PBDIT / Sales20%12%20%13% PBT / Sales20%12%20%13% PAT / Sales16%10%16%10% Quarterly PBDIT margin improves by 800 bps Increased A&P spends towards brand building initiatives - A&P increased by 109% to Rs.50.9 crore as compared to Rs.24.4 crore in Q Tax rate higher on account of higher MAT rate on domestic operations
Q2 FY Sales Mix (Consolidated) * HI – Household Insecticides
Business Review - Domestic Q2 FY
Q2 FY Scenario: Domestic Industry Scenario –FMCG sector growth continues to be strong –Vegetable oil prices are at lower levels as compared to FY –Rupee strengthened versus the USD in Q GCPL Performance Industry Growth (AC Nielsen Off Take) GCPL Standalone (Sales Growth) Q2 ‘0910 Toilet Soaps12.1%28.2% Hair Colours19.6%47.5% *Off take in value MRP
Q2 Highlights Soaps –Significant increase in market share; market share for Sep 2009 is 10.9% as against 9.6% in March 2009 –Highest ever soap market share for GCPL –Cinthol Regular launched in a small pack at Rs.6 –Godrej No.1 crosses Rs.500 crore to strengthen its position as India’s third largest soap brand –Godrej No.1 attained leadership in value market share in North in August 2009 –Godrej No.1 attained leadership in volume & value market share in Uttar Pradesh, Punjab, Haryana,Uttarnachal and Himachal Pradesh –Godrej No.1 attained leadership in volume market share in Delhi and Gujarat. Hair Colours –Market share for Sep 2009 is 34.7% as against 33.7% in March 2009
Soaps – Industry Growth & GCPL Growth
Hair Colour – Industry Growth & GCPL Growth
GCPL Market Share Value Trend - Total Soaps Hair Colours
GCPL Market Share Value Trend - Rural Soaps Hair Colours
Key Q2 Initiatives Focused approach to brand portfolio Significant increase in rural reach Strong innovations in both soap & hair colour Substantial increase in brand investment Strong cost effectiveness & productivity improvement program Building a “brighter” organization to drive growth
Events / Recognitions ICRA has reaffirmed LAA (pronounced L double A) rating to the Rs.60 million Fund Based Limits and Rs.100 million Non Fund Based Limits of Godrej Consumer Products Limited (GCPL). This is a high-credit-quality rating assigned by ICRA to long term debt instruments. The rated instrument carries low credit risk. ICRA has also reaffirmed the A1+ (pronounced A one plus) rating assigned to Rs. 240 million secured Short Term Fund based, Rs. 1,600 million secured Short Term Non-Fund based bank facilities and Rs. 200 million Short Term Debt (including Commercial Paper Programme) of GCPL. ICRA has also reaffirmed the A1+ rating assigned to Rs. 1,115 million unsecured Short Term Fund based and Rs. 1,300 million unsecured Short Term Non-Fund based bank facilities of GCPL. The rating of A1+ is the highest-credit-quality rating assigned by ICRA to short- term debt instruments. Instruments rated in this category carry the lowest credit risk in the short-term.
Godrej Sara Lee Limited (GSLL) Rs. CroreH * Net Sales139.7 PBT26.7 Tax5.1 PAT21.6 Date of Acquisition of 49% stake: 01-Jun In May 2009, the Board of directors of Godrej Consumer Products approved the proposed acquisition of 49% stake in Godrej Sara Lee Limited * Consolidated results of Godrej Consumer Products Limited include the appropriate share of the results of Godrej Sara Lee Limited w.e.f June 1, 2009.
Financials & Ratios GCPL Standalone
Financial Highlights - Standalone 27% 107% 115% 112% 25% 91% 100% 94%
Q2 FY Sales Mix (Standalone)
Dividend – Q2 FY Q2 Dividend announced Dividend per ShareRe.1 Dividend %100% Total outlay (including tax on distributed profits)Rs crore Dividend % till date for % Dividend payout % YTD PAT (Standalone)51.3%
Balance Sheet (Standalone) Liabilities (Rs. Crore) 30-Sep-09 Net Worth Other Liabilities4.89 Total Assets (Rs. Crore) 30-Sep-09 Net Fixed Assets Investment in Subsidiaries Investment – Other Cash & Bank Balance (including Rights investment of Rs crore) Loans to subsidiary / others Net Working Capital(48.40) Total837.56
Net Working Capital Rs. CroreQ Inventory130.3 Debtors36.5 Loans & Advances43.7 Current Assets210.5 Liabilities(133.6) Provisions(125.3) Current Liabilities(258.9) Net Working Capital(48.4)
Funds Flow (Standalone) Q (Rs. Crore) SOURCES Increase in share capital Internal Accruals Cash & Bank Investment in Mutual Funds Total APPLICATIONS Repayment of borrowings10.04 Investment in subsidiaries Dividend payout Working capital changes Total280.25
Cost Structure (Standalone) Amount in Rs. Crore Q % of Sales Q % of Sales H % of Sales H % of Sales Material Cost % % % % Staff Cost % % % % Depreciation3.91.2%3.51.4%7.81.2%8.11.5% Advt & Publicity % % % % Other Expenses % % % % Int & Fin. Chgs0.70.2%2.40.9%2.40.4%4.60.9% Prov. for Tax %5.42.1% % % PAT % % % % Net Sales % % % % Total Other Income % % % %
Ratios - Standalone Q2 0910Q2 0809H1 0910H A&P / Sales7%4%8%6% PBDIT / Sales20%12%20%13% PBT / Sales25%15%23%14% PAT / Sales21%12%19%12% NWC / Sales (days)(13)(20)(13)(19) Fixed Asset TO Ratio ROCE39%26%37%26% RONW33%24%31%24%
International Operations Kinky Group Proprietary Ltd. Godrej Global Mid-East FZE
Key Highlights of International Operations Despite recession and tough operating conditions, international business grew by 22% (in Rupee terms) South Africa businesses witnessed robust growth: –Rapidol grew by 25% (in ZAR) –Kinky grew by 31% (in ZAR) UK business (Keyline Brands) grew by 19% (in GBP)
Kinky Group (Pty) Limited - Performance* Date of Acquisition: 01-Apr-2008 Rs. CroreQ2 0910Q2 0809H1 0910H Net Sales PBIT Interest PBT Tax PAT 0.28(0.22)0.59 (0.06) Kinky Business grew at 31% (in Foreign Currency) over Q2 FY * Includes the results of Godrej Consumer Products Mauritius Limited (Mauritius) and its subsidiaries Godrej Kinky Holdings Limited (Mauritius) and Kinky Group (Proprietary) Limited (South Africa)
Keyline Brands Limited – Performance* Business grew at 18.6% (in Foreign Currency) despite recession in the UK economy Cuticura brand grown by 2.3 times in Apr-Sept’ period with most growth coming from Hand Hygiene segment Cuticura Hand Hygiene Gel regains clear volume market leadership to become the top brand end beginning July’ 09 Date of Acquisition: 31-Oct-2005 Rs. CroreQ2 0910Q2 0809H1 0910H Net Sales PBIT Interest PBT Tax PAT * Includes the results of Godrej Netherlands BV (Netherlands) and its subsidiaries, Godrej Consumer Products (UK) Limited - (UK), Keyline Brands Limited - (UK) & Inecto Manufacturing Limited - (UK)
Rapidol Pty Ltd – Performance Rs. CroreQ2 0910Q2 0809H1 0910H Net Sales PBIT PBT Tax PAT Date of Acquisition: 01-Sep-2006 Business grew at 25.4% (in Foreign Currency) over Q2 FY
Godrej Global Mid-East – Performance Rs. CroreQ2 0910Q2 0809H1 0910H Net Sales PBIT PBT PAT Date of Acquisition: 01-Oct-2007 Business grew at 34.4% (in Foreign Currency) over Q2 FY Godrej Expert Colors launched in UAE
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