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For
the quarter ending June 2022, consolidated net sales (including other operating income) of Godrej Consumer Products has increased 7.96% to Rs 3124.97 crore compared to quarter ended june 2021. Sales of India segment has gone up 11.37% to Rs 1,849.41 crore (accounting for 58.55% of total sales). Sales of Indonesia segment has gone down 8.50% to Rs 376.51 crore (accounting for 11.92% of total sales). Sales of Africa (including strength of Nature) segment rose 12.19% to Rs 778.87 crore (accounting for 24.66% of total sales). Sales of Others segment has gone down 3.55% to Rs 154.05 crore (accounting for 4.88% of total sales). Inter-segment sales rose Rs 31.62 crore to Rs 33.87 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 13.77% to Rs 494.78 crore. PBIT of India segment fell 3.97% to Rs 410.12 crore (accounting for 82.89% of total PBIT). PBIT of Indonesia segment fell 38.08% to Rs 57.58 crore (accounting for 11.64% of total PBIT). PBIT of Africa (including strength of Nature) segment fell 24.09% to Rs 24.58 crore (accounting for 4.97% of total PBIT). PBIT of Others segment fell 88.30% to Rs 2.50 crore (accounting for 0.51% of total PBIT). PBIT margin of India segment fell from 25.72% to 22.18%. PBIT margin of Indonesia segment fell from 22.60% to 15.29%. PBIT margin of Africa (including strength of Nature) segment fell from 4.66% to 3.16%. PBIT margin of Others segment fell from 13.37% to 1.62%. Overall PBIT margin fell from 19.61% to 15.66%. Operating profit margin has declined from 20.80% to 16.67%, leading to 13.48% decline in operating profit to Rs 520.80 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 47.63% to 51.58%. Purchase of finished goods cost fell from 2.95% to 2.33%. Employee cost decreased from 9.50% to 8.22%. Other expenses rose from 20.21% to 21.38%. Selling and administration expenses rose from 4.82% to 6.38%. Other income rose 31.67% to Rs 27.52 crore. PBIDT fell 11.97% to Rs 548.32 crore. Provision for interest rose 28.47% to Rs 35.06 crore. PBDT fell 13.82% to Rs 513.26 crore. Provision for depreciation rose 7.90% to Rs 57.06 crore. Profit before tax down 15.94% to Rs 456.20 crore. Share of profit/loss were nil in both the periods. Extraordinary items were decreased to Rs -1.83 crore. Provision for tax was expense of Rs 109.25 crore, compared to Rs 127.24 crore. Effective tax rate was 24.04% compared to 23.52%. Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 16.57% to Rs 345.12 crore. Promoters’ stake was 63.22% as of 30 June 2022 ,compared to 63.23% as of 30 June 2021 . Promoters pledged stake was 0.66% as of 30 June 2022 ,compared to 0.66% as of 30 June 2021 .
Full year results analysis.
Net sales (including other operating income) of Godrej Consumer Products has increased 11.31% to Rs 12276.5 crore. Sales of India segment has gone up 11.15% to Rs 6,951.56 crore (accounting for 55.80% of total sales). Sales of Indonesia segment has gone down 3.66% to Rs 1,705.19 crore (accounting for 13.69% of total sales). Sales of Africa (including strength of Nature) segment rose 22.06% to Rs 3,049.74 crore (accounting for 24.48% of total sales). Sales of Others segment has gone up 12.74% to Rs 750.77 crore (accounting for 6.03% of total sales). Inter-segment sales rose Rs 160.19 crore to Rs 180.76 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 0.06% to Rs 2,291.83 crore. PBIT of India segment rose 4.77% to Rs 1,712.00 crore (accounting for 74.70% of total PBIT). PBIT of Indonesia segment fell 19.93% to Rs 385.05 crore (accounting for 16.80% of total PBIT). PBIT of Africa (including strength of Nature) segment fell 0.79% to Rs 105.68 crore (accounting for 4.61% of total PBIT). PBIT of Others segment rose 24.48% to Rs 89.10 crore (accounting for 3.89% of total PBIT). PBIT margin of India segment fell from 26.13% to 24.63%. PBIT margin of Indonesia segment fell from 27.17% to 22.58%. PBIT margin of Africa (including strength of Nature) segment fell from 4.26% to 3.47%. PBIT margin of Others segment rose from 10.75% to 11.87%. Overall PBIT margin fell from 20.49% to 18.40%. Operating profit margin has declined from 21.66% to 19.52%, leading to 0.32% rise in operating profit to Rs 2,396.01 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 41.61% to 46.87%. Purchase of finished goods cost fell from 3.30% to 2.87%. Employee cost decreased from 10.15% to 8.95%. Other expenses fell from 23.37% to 21.89%. Selling and administration expenses fell from 6.62% to 6.09%. Other income rose 33.76% to Rs 89.71 crore. PBIDT rose 1.24% to Rs 2485.72 crore. Provision for interest fell 13.01% to Rs 110.16 crore. Loan funds declined from Rs 1,863.97 crore as of 31 March 2021 to Rs 1,704.34 crore as of 31 March 2022. Inventories rose to Rs 2,129.85 crore as of 31 March 2022 from Rs 1,716.25 crore as of 31 March 2021. Sundry debtors were higher at Rs 1,116.32 crore as of 31 March 2022 compared to Rs 1,004.50 crore as of 31 March 2021. Cash and bank balance rose to Rs 1,107.77 crore as of 31 March 2022 from Rs 672.21 crore as of 31 March 2021. Investments rose to Rs 1,015.43 crore as of 31 March 2022 from Rs 679.10 crore as of 31 March 2021 . PBDT rose 2.01% to Rs 2375.56 crore. Provision for depreciation rose 3.42% to Rs 210.83 crore. Fixed assets declined from Rs 3,832.35 crore as of 31 March 2021 to Rs 1,488.11 crore as of 31 March 2022. Intangible assets increased from Rs 5,129.85 crore to Rs 7,847.63 crore. Profit before tax grew 1.88% to Rs 2,164.73 crore. Extraordinary items were increased to Rs -9.75 crore. Provision for tax was expense of Rs 371.87 crore, compared to Rs 359.54 crore. Effective tax rate was 17.25% compared to 17.28%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 3.64% to Rs 1,783.39 crore. Equity capital increased from Rs 102.25 crore as of 31 March 2021 to Rs 102.26 crore as of 31 March 2022. Per share face Value remained same at Rs 1.00. Promoters’ stake was 63.22% as of 31 March 2022 ,compared to 63.23% as of 31 March 2021 . Promoters pledged stake was 0.66% as of 31 March 2022 ,compared to 0.66% as of 31 March 2021 . Cash flow from operating activities decreased to Rs 1,450.57 crore for year ended March 2022 from Rs 2,029.63 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 276.52 crore, compared to Rs 163.86 crore during the year ended March 2021. Other Highlights
In
Q1 FY23, Homecare declined by 4% and personal care up by 25% on YoY basis.
During
the quarter India sales grew by 12% on YoY basis. Company gained market share
in 90% of its categories.
In
Q1 FY23, (1) Indonesia sales declined 12% in Constant Currency terms, (2) Africa,
USA & Middle East grew 12% and (3) Latin America & SAARC grew by 15% on
YoY basis.
Management Comments :
Sudhir
Sitapati, Managing Director and CEO, GCPL, said: We delivered a steady
performance in 1Q FY 2023. Overall sales grew by 8% with 3-year CAGR in double
digits. However, this growth was driven by pricing. We continue to believe that
with the relatively non-discretionary, mass pricing of our portfolio and very
good performance on market shares, volume growth will return in the medium
term. Our overall EBITDA declined by 13% (without one-offs) driven by
unprecedented global commodity inflation, upfront marketing investments and a
weak performance in our Indonesia and Latin America & SAARC businesses. PAT
without exceptional items and one-offs declined by 16%. From a geography
perspective, India grew steady at 12%. Our Africa, USA and Middle East business
continued its robust growth trajectory, growing at 12% in INR and in constant
currency terms. Performance in our Indonesian business was weak, declining by
9% in INR and 12% in constant currency terms. From a category perspective, in
India, we saw continued momentum in Personal Care, which grew by 25%. Home Care
delivered a soft performance and declined by 4%. With inflationary pressures
abating, we expect recovery in consumption and gross margins alongside
continued higher marketing investments with a significant focus on reducing
controllable costs. We continue to have a healthy balance sheet and our net
debt to equity ratio continues to drop. We are on a journey to reduce inventory
and wasted cost and are deploying this to drive profitable and sustainable
volume growth across our portfolio through category development. We remain
committed to our purpose of bringing the goodness of health and beauty to consumers
in emerging markets.
| Godrej Consumer Products : Consolidated Results | | | Quarter ended | Year ended |
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| Particulars | 202206 | 202106 | Var.(%) | 202203 | 202103 | Var.(%) |
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| Net Sales (including other operating income) | 3,124.97 | 2,894.45 | 7.96 | 12,276.50 | 11,028.62 | 11.31 | | OPM (%) | 16.67 | 20.80 | -413 bps | 19.52 | 21.66 | -214 bps | | OP | 520.80 | 601.97 | -13.48 | 2,396.01 | 2,388.25 | 0.32 | | Other Inc. | 27.52 | 20.90 | 31.67 | 89.71 | 67.07 | 33.76 | | PBIDT | 548.32 | 622.87 | -11.97 | 2,485.72 | 2,455.32 | 1.24 | | Interest | 35.06 | 27.29 | 28.47 | 110.16 | 126.63 | -13.01 | | PBDT | 513.26 | 595.58 | -13.82 | 2,375.56 | 2,328.69 | 2.01 | | Depreciation | 57.06 | 52.88 | 7.90 | 210.83 | 203.85 | 3.42 | | PBT | 456.20 | 542.70 | -15.94 | 2164.73 | 2124.84 | 1.88 | | Share of Profit/(Loss) from Associates | 0 | -0.25 | - | 0.28 | -0.01 | LP | | PBT before EO | 456.2 | 542.45 | -15.90 | 2165.01 | 2124.83 | 1.89 | | EO Income | -1.83 | -1.55 | -18.06 | -9.75 | -44.47 | 78.08 | | PBT after EO | 454.37 | 540.9 | -16.00 | 2155.26 | 2080.36 | 3.60 | | Taxation | 109.25 | 127.24 | -14.14 | 371.87 | 359.54 | 3.43 | | PAT | 345.12 | 413.66 | -16.57 | 1783.39 | 1720.82 | 3.64 | | Minority Interest (MI) | 0 | 0 | - | 0 | 0 | - | | Net profit | 345.12 | 413.66 | -16.57 | 1783.39 | 1720.82 | 3.64 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 345.12 | 413.66 | -16.57 | 1783.39 | 1720.82 | 3.64 | | EPS (Rs)* | 3.39 | 4.06 | -16.47 | 17.52 | 17.19 | 1.93 | | | * EPS is on current equity of Rs 102.26 crore, Face value of Rs 1, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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| Godrej Consumer Products : Consolidated Segment Results | | | Quarter ended | Year ended |
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| % of (Total) | 202206 | 202106 | Var.(%) | % of (Total) | 202203 | 202103 | Var.(%) |
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| Sales | | India | 58.55 | 1,849.41 | 1,660.65 | 11.37 | 55.80 | 6,951.56 | 6,254.33 | 11.15 | | Indonesia | 11.92 | 376.51 | 411.47 | -8.50 | 13.69 | 1,705.19 | 1,770.02 | -3.66 | | Africa (including strength of Nature) | 24.66 | 778.87 | 694.23 | 12.19 | 24.48 | 3,049.74 | 2,498.53 | 22.06 | | Others | 4.88 | 154.05 | 159.72 | -3.55 | 6.03 | 750.77 | 665.93 | 12.74 | | Total Reported Sales | 100.00 | 3,158.84 | 2,926.07 | 7.96 | 100.00 | 12,457.26 | 11,188.81 | 11.34 | | Less: Inter segment revenues | | 33.87 | 31.62 | 7.12 | | 180.76 | 160.19 | 12.84 | | Net Sales | 100.00 | 3,124.97 | 2,894.45 | 7.96 | 100.00 | 12,276.50 | 11,028.62 | 11.31 | | PBIT | | India | 82.89 | 410.12 | 427.08 | -3.97 | 74.70 | 1,712.00 | 1,634.12 | 4.77 | | Indonesia | 11.64 | 57.58 | 92.99 | -38.08 | 16.80 | 385.05 | 480.92 | -19.93 | | Africa (including strength of Nature) | 4.97 | 24.58 | 32.38 | -24.09 | 4.61 | 105.68 | 106.52 | -0.79 | | Others | 0.51 | 2.50 | 21.36 | -88.30 | 3.89 | 89.10 | 71.58 | 24.48 | | Total PBIT | 100.00 | 494.78 | 573.81 | -13.77 | 100.00 | 2,291.83 | 2,293.14 | -0.06 | | Less : Interest | | 35.06 | 27.29 | 28.47 | | 110.16 | 126.63 | -13.01 | | Add: Other un-allcoable | | -5.35 | -5.62 | 4.80 | | -26.41 | -86.15 | 69.34 | | PBIT Margin(%) | | India | | 22.18 | 25.72 | -354.19 | | 24.63 | 26.13 | -150.03 | | Indonesia | | 15.29 | 22.60 | -730.64 | | 22.58 | 27.17 | -458.93 | | Africa (including strength of Nature) | | 3.16 | 4.66 | -150.83 | | 3.47 | 4.26 | -79.81 | | Others | | 1.62 | 13.37 | -1,175.06 | | 11.87 | 10.75 | 111.89 | | PBT | 100.00 | 454.37 | 540.90 | -16.00 | 100.00 | 2,155.26 | 2,080.36 | 3.60 |
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