Godrej Consumer Products Limited Q1 Financial Update Quarterly update Q1 2001-02 Godrej Consumer...
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Transcript of Godrej Consumer Products Limited Q1 Financial Update Quarterly update Q1 2001-02 Godrej Consumer...
Godrej Consumer Products Limited
Q1 Financial Update
Quarterly update Quarterly update
Q1 Q1 2001-022001-02
Godrej Consumer Products LimitedGodrej Consumer Products Limited
Analysts MeetAnalysts Meet
26 July 200126 July 2001
2Godrej Consumer Products Limited
Q1 Financial Update
We’ve (d)emerged
3Godrej Consumer Products Limited
Q1 Financial Update
AgendaAgenda
• Godrej Consumer Products Ltd. – The CompanyGodrej Consumer Products Ltd. – The Company
• Business InitiativesBusiness Initiatives
• Q1 ResultsQ1 Results
• Key FinancialsKey Financials
4Godrej Consumer Products Limited
Q1 Financial Update
The CompanyThe Company• GCPL is a result of the demerger of the GCPL is a result of the demerger of the
Consumer Products Division of Godrej Soaps Consumer Products Division of Godrej Soaps Limited (now renamed Godrej Industries Ltd.)Limited (now renamed Godrej Industries Ltd.)
• Focused FMCG companyFocused FMCG company
• Presence in Personal, Hair, Fabric & Presence in Personal, Hair, Fabric & Household care market segmentsHousehold care market segments
• Market Leadership in Hair Colour & Liquid Market Leadership in Hair Colour & Liquid DetergentsDetergents
• High Standards of Corporate GovernanceHigh Standards of Corporate Governance
• Owns all its BrandsOwns all its Brands
5Godrej Consumer Products Limited
Q1 Financial Update
Godrej Consumer Products LtdGodrej Consumer Products Ltd
Board of Directors• Adi Godrej - Chairman & Managing Director
• Jamshyd Godrej
• Nadir Godrej
• Bala Balachandran
• Rama Bijapurkar
• Bharat Doshi
• Anupam Puri
• Hoshedar Press - Executive Director & President
6Godrej Consumer Products Limited
Q1 Financial Update
Shareholding PatternShareholding Pattern
Public26.7%
Promoters68.2%
Banks, FIs, MFs
4.5%
FIIs0.6%
As on June 30, 2001
7Godrej Consumer Products Limited
Q1 Financial Update
Shareholder Information Shareholder Information
• GCPL shares are traded on the Bombay Stock GCPL shares are traded on the Bombay Stock
Exchange, National Stock Exchange and stock Exchange, National Stock Exchange and stock
exchanges at Chennai, Kolkata, Delhi and Ahmedabad.exchanges at Chennai, Kolkata, Delhi and Ahmedabad.
• Listed on BSE on 18-June-01 Listed on BSE on 18-June-01
• Listed on NSE on 20-June-01Listed on NSE on 20-June-01
8Godrej Consumer Products Limited
Q1 Financial Update
Facilities & NetworkFacilities & Network
Manufacturing FacilitiesManufacturing Facilities --
22
BranchesBranches --
44
C & F AgentsC & F Agents -- 3232
DistributorsDistributors -- 17001700
Retail Outlets coveredRetail Outlets covered -- 4.5 lac4.5 lac
Retail Coverage of any Godrej Soap Retail Coverage of any Godrej Soap --
16.0 lac16.0 lac
Retail Coverage of any Godrej Hair Dye-Retail Coverage of any Godrej Hair Dye-
11.9 lac11.9 lac
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Q1 Financial Update
Key BrandsKey Brands
Fabric & Fabric & Household CareHousehold Care
Hair CareHair CarePersonal CarePersonal Care
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Q1 Financial Update
Market SharesMarket Shares
Q1 01-02 Q1 00-01Toilet Soaps 5.9 5.3Hair Colour 44.5 41.8Liquid Detergent 73.9 78.8Shaving Cream 9.8 10.8Fairness Cream 3.6 - Talcum Powder 1.5 2.2
Source : ORG DataAll figures shown are % for All India Value MS
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Q1 Financial Update
25%
0%
20%
7%48%
Sales Mix Sales Mix Q1 01- 02Q1 01- 02
Godrej Brand Soaps
(Rs.66.4 cr)
Contract Mfg
(Rs.35.5 cr)
Liquid Detergents
(Rs.0.3 cr)
Hair Colour
(Rs.27.9 cr)
Toiletries
(Rs.10.3 cr)
12Godrej Consumer Products Limited
Q1 Financial Update
Category-wise TurnoverCategory-wise Turnover
Q1 01-02 Q1 00-01** Growth%
Soaps 66.4 54.0 23%Hair Colour 27.9 21.9 27%Detergents 0.3 0.8 -58%Toiletries 10.3 6.6 55%Total Godrej Brands 104.9 83.3 26%
Contract Manufacturing 35.5 20.6 72%
Total Sales 140.4 103.9 35%
Rs. Crore
** As a part of Godrej Soaps Limited
13Godrej Consumer Products Limited
Q1 Financial Update
54.0
21.9
6.60.8
20.6
66.4
27.9
10.3
0.3
35.5
0. 0
1 0. 0
20. 0
30. 0
40. 0
50. 0
60. 0
70. 0
Godrej
Brand
Soaps
Hair
Colour
Other
Toiletries
Liquid
Detergent
Contract
Mfg
Q1 00-01 Q1 01-02
Category-wise TurnoverCategory-wise TurnoverRs.Crore
23%
27%
55%
72%
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Q1 Financial Update
Off-take GrowthOff-take GrowthQ1 ‘01 vs Q1 ‘00Q1 ‘01 vs Q1 ‘00
Godrej IndustryToilet Soaps 10% -10%Hair Colour 34% 20%Detergents -26% -20%Toiletries 87% 14%All figures are %age of Value Offtake growth
Source : ORG DataAll figures shown are % for All India Value MS
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Q1 Financial Update
Marketing/Sales InitiativesMarketing/Sales Initiatives
• Focus on Personal, Hair & Fabric care Focus on Personal, Hair & Fabric care
segmentssegments
• Large number of Marketing initiativesLarge number of Marketing initiatives
• Restructuring of Distribution System - Restructuring of Distribution System -
Super & Sub Stockists appointedSuper & Sub Stockists appointed
• Increased rural penetration with more Increased rural penetration with more
than 1 million outlets reached for than 1 million outlets reached for
some brandssome brands
• SKU RationalisationSKU Rationalisation
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Q1 Financial Update
Category HighlightsCategory Highlights
Personal CarePersonal Care
• FAIRGLOW continues on its success path FAIRGLOW continues on its success path
• Re-launch of GODREJ NO1 with improved Re-launch of GODREJ NO1 with improved packaging has started showing results – packaging has started showing results – growth of 318% by volume in Q1.growth of 318% by volume in Q1.
• CINTHOL being re-launchedCINTHOL being re-launched
17Godrej Consumer Products Limited
Q1 Financial Update
Category Highlights Category Highlights (contd . . )(contd . . )
Hair CareHair Care
• Colour Soft Liquid Hair Colour has shown Colour Soft Liquid Hair Colour has shown strong growth (2.7% MS) aided by launch of 4strong growth (2.7% MS) aided by launch of 4thth variantvariant
• GODREJ Powder Hair Dye sachet has become GODREJ Powder Hair Dye sachet has become the best selling rural brand in the hair dyes the best selling rural brand in the hair dyes market market
• GODREJ Kesh Kala has grown in the smaller GODREJ Kesh Kala has grown in the smaller towns (3.1% MS)towns (3.1% MS)
18Godrej Consumer Products Limited
Q1 Financial Update
Business InitiativesBusiness Initiatives
• Implementation of EVA Implementation of EVA
• Red & Blue Team Project to chalk out a three Red & Blue Team Project to chalk out a three
year strategic planyear strategic plan
• Think TankThink Tank
• Young Executive BoardYoung Executive Board
• E-enabling of the organisationE-enabling of the organisation
• Web enabled ERPWeb enabled ERP
• SCM project SCM project
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Q1 Financial Update
FinancialsFinancials
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Q1 Financial Update
Highlights Q1 01-02Highlights Q1 01-02
Sales Growth (own Brands)Sales Growth (own Brands) 26 % 26 % (Q1 01-02 vs Q1 00-01)(Q1 01-02 vs Q1 00-01)
PATPAT Rs. 9.2 CroreRs. 9.2 Crore
EVAEVA Rs. 6.5 CroreRs. 6.5 Crore
Reduction in DebtReduction in Debt Rs.34.4CroreRs.34.4Crore
Improvement in Debt Improvement in Debt
Equity RatioEquity Ratio 1.43 to 0.601.43 to 0.60
Achieved Negative Working CapitalAchieved Negative Working Capital
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Q1 Financial Update
Balance Sheet Balance Sheet
LiabilitiesLiabilities AssetsAssets 1-4-01 30-6-01 1-4-01 30-6-01
Equity Capital 23.9 23.9 Net Fixed Assets 99.1 97.1
Reserves 24.8 34.0 Net Current Assets 19.1 (4.1)
Debt 69.5 35.1
Total 118.2 93.0 Total 118.2 93.0 Total 118.2 93.0 Total 118.2 93.0
Rs.Crore
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Q1 Financial Update
Funds FlowFunds FlowRs.Crore Q1 01-02
Sources
Internal Accruals
11.2
W.Capital Reduction
23.2
Total
34.4
Application
Debt reduction
34.4
Total
34.4
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Q1 Financial Update
Summarised Profit & Loss AccountSummarised Profit & Loss Account
Rs Crore
SalesSales 140.4 140.4 Other IncomeOther Income 2.7 2.7 ExpenditureExpenditure 125.5 125.5 PBDITPBDIT 17.6 17.6DepreciationDepreciation 2.3 2.3InterestInterest 1.5 1.5PBTPBT 13.8 13.8
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Q1 Financial Update
Q1 01-02 % of Sales
Material Cost 65.1 46.4%
Staff Cost 4.5 3.2%
Excise Duties 16.1 11.5%
Advertising & Sales Promotion 20.4 14.5%
Other Expenditure 19.4 13.8%
Interest & Financial Charges 1.5 1.1%
Depreciation 2.3 1.6%
Provision for Taxation 4.6 3.3%
PAT 9.2 6.5% Sales 140.4 100.0% Other Income 2.7 1.9%
Cost StructureCost Structure
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Q1 Financial Update
Key RatiosKey Ratios
Q1 01-02
PBDIT/ Sales 12.5%
PBT/ Sales 9.8%
PAT/ Sales 6.5%
Interest/ Sales 1.1%
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Q1 Financial Update
Q1 01-02
Net Working Capital / Sales (no. of days) -2.7
Fixed Asset Turnover Ratio 5.8
Total Asset Turnover Ratio 6.0
ROCE 65.8%
RONW 63.4%
EPS on share of Rs.4 each 6.1
Key Ratios Key Ratios contd..contd..
All figures are annualised
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Q1 Financial Update
Strategic ThrustStrategic ThrustMarketingMarketing
• Grow faster than the market/categoryGrow faster than the market/category
• Re-invest margins to grow volumesRe-invest margins to grow volumes
• Look at EVA positive acquisitionsLook at EVA positive acquisitions
FinanceFinance
• Maximise EVAMaximise EVA
• Maintain negative working capitalMaintain negative working capital
ManufacturingManufacturing
• Reduce fixed costsReduce fixed costs
• Increase manufacturing in excise/tax exempt areasIncrease manufacturing in excise/tax exempt areas
Godrej Consumer Products Limited
Q1 Financial Update
Thank YouThank You