Godrej
Consumer Products Limited (GCPL), a leading emerging markets FMCG company, today
announced its financial results for the quarter ended December 31, 2015.
FINANCIAL OVERVIEW
·
3Q FY 2016 consolidated organic constant currency net sales increased by
9%
- India business branded net
sales increased by 8%, driven by a 9% volume growth; double-digit volume growth
in Household Insecticides and robust mid-single digit volume growth in Soaps
- International business grew
by 9% on an organic constant currency basis
·
3Q FY 2016 consolidated organic constant currency EBITDA increased by 19%,
driven by a 18% growth in the India business and 20% growth in the international
business
·
3Q FY 2016 consolidated net profit without exceptionals and one-offs
increased by 23%
·
GCPL continues to deliver competitive performance in its core categories,
across geographies
·
The board has declared an interim dividend of 100% (INR 1.00 per share)
CHAIRMAN’S COMMENTS
 |
| Adi Godrej, Chairman, Godrej Group |
Commenting
on the financial performance of 3Q FY 2016, Mr. Adi Godrej, Chairman, Godrej
Group, said:
“In a challenging operating environment, we have
delivered a resilient and competitive performance in 3QFY16. Our consolidated
organic constant currency sales growth of 9% and EBITDA growth of 19% are well
ahead of the market growth. Our India business sustained its volume growth
leadership with a growth of 9%. Our international business too delivered
healthy performance, with an organic constant currency sales growth of 9%.
Operating earnings growth was ahead of sales growth across most of our
geographies, aided by lower commodity costs, calibrated price hikes, stringent
cost management and the effective leveraging of brand platforms.
While the pace of economic recovery is slower than
anticipated, we are hopeful of continuing our relative outperformance in the
quarters ahead. Over the next few quarters, we will be introducing several
exciting new launches to stimulate demand and extend leadership in our core
categories. We are also enhancing our go-to-market infrastructure and investing
strategically for the future. Overall, we expect our focus on innovation, distribution
initiatives and superior on-ground execution to aid growth ahead of the market.
The medium and long-term growth prospects in India and
our other emerging markets remain robust. We believe that there is still a lot
of headroom for growth across these markets, given the low penetration and
consumption rates in our core categories. I am confident that with our clear
strategic focus, differentiated product portfolio, superior execution and
top-notch team, we will continue to deliver industry-leading results in the
future.”
BUSINESS REVIEW – INDIA
Performance Highlights
·
3Q FY 2016 India net sales increased
by 8% to INR 1,261 crore
o
India branded
net sales increased by 8%, driven by 9% volume growth
·
3Q FY 2016 EBITDA increased by 18% to INR 268 crore
·
3Q FY 2016 net profit increased by 18% to INR 203 crore
Category Review
Household
Insecticides
Household Insecticides sustained its double-digit
volume growth momentum with a sales growth of 15%. The success of our new
launches, effective communication and superior on-ground execution have aided
this strong growth, ahead of the category. We have consistently gained market
share across formats and ended the quarter with our highest ever market share.
Good knight continues to lead category penetration and drive market development
initiatives. Gross margins continue to benefit from lower crude oil prices and
have improved significantly.
Soaps
Our Soaps business maintained its robust mid-single
digit volume growth in a highly competitive environment. This was offset by
deflationary pressures, resulting in a value growth of 2%. As part of our focus
to premiumise our portfolio, we have launched Godrej No. 1 Nature Soft -
Glycerin & Honey variant in the winter soap space. Cinthol, our premium
soap brand, continues to lead volume and value growth. We remain competitive on
sales promotion investments, in a low commodity cost environment. Gross margins
during the quarter benefited from lower palm oil prices and have improved
significantly.
Hair
Colours
The sales of Hair Colours declined by 1% this quarter.
While Godrej Expert Rich Crème recorded a growth in the high teens, powder hair
colour growth declined due to channel destocking. This was caused by
up-stocking towards the end of the previous quarter, ahead of price hikes and a
decline in value growth due to price-off trade offers. Godrej Expert Rich Crème
continues to gain market share and lead distribution reach and household
penetration in the crème category. We introduced Godrej Expert Rich Crème in a
multi-application pack priced at INR 120 and also launched a new advertisement
campaign.
Liquid
Detergents
Liquid Detergents delivered a double-digit, volume
driven sales growth of 11%, despite the late onset of the winter. During the
quarter, we restaged our Ezee brand with a newly designed bottle. New insight
driven communication was also launched to drive brand relevance and
penetration.
Air
Fresheners
Godrej aer continues to perform well, aided by
innovative product offerings and various consumer engagement initiatives. We
have continued to gain market share and aer is now the number one player in the
home sprays air care market (on an exit market share basis). We recently
launched aer pocket, which targets the bathroom air care segment.
Health
and Wellness
Our Health and Wellness portfolio of hand washes and
hand sanitiser, under Godrej Protekt, has been successfully introduced in the
general trade. The initial response has been encouraging.
Premium
Hair Care
BBLUNT,
our range of premium hair care products, has been launched in modern trade and
premium general trade outlets.
BUSINESS REVIEW – INTERNATIONAL
Indonesia
Our Indonesia business delivered a competitive
performance, with a constant currency sales growth of 3%, despite the high base
of 27% growth in 3QFY15. FMCG industry growth in Indonesia continues to remain
flat, impacted by the overall macroeconomic challenges in the country. Our
operating margins (EBITDA) increased by 490 bps year-on-year, driven by
calibrated price hikes, lower commodity costs and the optimisation of marketing
investments. Our Hit and Stella brands continue to maintain competitive
positions in the market.
Africa
We have a business presence in countries in East, West and
Southern Africa, across the Hair Extensions, Hair Colours, Household
Insecticides and Personal Wash categories. Our Africa business delivered strong
growth, led by a 20% constant currency growth in our Darling business. Africa
operating margins (EBITDA) declined by 100 bps year-on-year due to upfront investments
in marketing and sales infrastructure.
Latin
America
Our Latin America business delivered a healthy sales
and profitability growth. Sales, in constant currency terms, increased by 28%,
led by the strong performance in Argentina. Our operating margins (EBITDA)
increased by 670 bps year-on-year, due to better gross margins and the effective
leveraging of brand platforms. Our Hair Colour market share continued to
increase, following the success of new launches, effective activation
programmes and superior on-ground execution.
Europe
Our European business delivered a strong constant
currency sales growth of 10%, led by strong growth in own brands portfolio. Our
operating margins (EBITDA) declined by 40 bps year-on-year due to higher investments
in brands and infrastructure.
Note: The
figures for the current quarter may not be comparable with those of the
corresponding quarter of the previous year, because of the acquisitions made
since then.
ABOUT GODREJ CONSUMER PRODUCTS
Godrej Consumer Products Limited is the largest
home-grown home and personal care company in India. We are constantly
innovating to delight our consumers with more exciting, superior quality
products at affordable prices.
We have bold ambitions and are becoming more agile and
future ready. We rank number 1 in hair colour, household insecticides and
liquid detergents and number 2 in soaps. In India, you grow up with our brands
- Good knight, Cinthol, Godrej Expert, Godrej No. 1 - and we are now on our way
to becoming an emerging markets FMCG leader.
In line with our 3X3 approach to international
expansion, we are building a presence in 3 emerging markets (Asia, Africa,
Latin America) across 3 categories (home care, personal wash, hair care). In
2010, we acquired the Indonesia based Megasari group, a leader in household
insecticides, air fresheners and baby care. With the acquisition of Rapidol, Kinky
and Frika in South Africa, and the Darling Group, a leading pan-Africa hair
care company, we have a strong presence in the fast growing African hair care
market. We acquired the Issue and Argencos groups in Argentina, leaders in hair
colour, in 2010, and expanded our footprint to Chile through the acquisition in
Cosmetica Nacional. Our UK business acquired in 2005 has a play in hair and
personal care. We also operate in the Middle East and have a strong presence
across SAARC countries.
For
further information, please contact:
|
V Srinivasan
|
Sameer Shah
|
Tapan Joshi
|
|
Email:
v.srinivasan@godrejcp.com
|
Email:
sa.shah@godrejcp.com
|
Email: tapan.joshi@godrejcp.com
|
|
Tel: +91 22 2519
4316
|
Tel: +91 22 2519
4467
|
Tel: +91 22 2519 5433
|
Disclaimer:
Some of
the statements in this communication may be forward looking statements 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 industry
structure, significant changes in political and economic environment in India
and overseas, tax laws, import duties, litigation and labour relations.
Adfactors PR contact :
Annapoorni Krishnan
98840 61132
Pooja Advani
09769700750
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