Godrej Jan-25

• The document provides an update on the performance and related matters of Godrej Consumer Products Ltd (GCPL) as of January 24, 2025.

Performance Update Q3 FY2025

• Standalone Underlying Volume Growth (UVG) is flat.
• Indonesia UVG increased by 6%.
• Consolidated Underlying Sales Growth (USG) increased by 6%.
• Consolidated EBITDA margin is at 20%.

Financial Performance

• Underlying Volume Growth for Consolidated and Standalone is flat.
• Net Sales growth year-on-year: Consolidated 3% (6% organic), Standalone 4%.
• Net Sales (Constant Currency) growth year-on-year: Consolidated 2% (4% organic).
• EBITDA growth year-on-year: Consolidated (10%), Standalone (21%).
• Net Profit (Reported) growth year-on-year: Consolidated (14%), Standalone (28%).
• Net Profit (without exceptional and one-off items) growth year-on-year: Consolidated (14%), Standalone (28%).

Geography-wise Sales Growth

• Standalone sales are ₹2,237 crore with 4% year-on-year growth.
• Indonesia sales are ₹508 crore with 9% year-on-year growth (8% in constant currency).
• Africa, USA & Middle East sales (Reported) are ₹771 crore with (16%) year-on-year growth, and Organic sales with (8%) year-on-year growth (1% in constant currency).
• Latin America and Others sales are ₹262 crore with 165% year-on-year growth (28% in constant currency).
• Total Net Sales (Reported) are ₹3,749 crore with 3% year-on-year growth(2% in constant currency), and Organic sales with 6% year-on-year growth (4% in constant currency).

EBITDA Margin

• Q3FY25 Operating EBITDA margin: Consolidated 20.2%, Standalone 22.6%, Indonesia 21.5%, Africa, USA & Middle East 14.8%, Latin America & Others 11.4%.
• Change in EBITDA margin (bps) (y-y): Consolidated (300), Standalone (710), Indonesia +60, Africa, USA & Middle East +340, Latin America & Others +1,460.

Net Profit Reconciliation (₹ crore)

• Net Profit consolidation Q3 FY2025: 498, Q3 FY2024: 581
• Net Profit Standalone Q3 FY2025: 342, Q3 FY2024: 473
• Restructuring costs consolidation Q3 FY2025: 4, Q3 FY2024: 5
• Restructuring costs Standalone Q3 FY2025: -, Q3 FY2024: 4
• Net Profit Withouth exceptionals consolidation Q3 FY2025: 502, Q3 FY2024: 586
• Net Profit Withouth exceptionals Standalone Q3 FY2025: 342, Q3 FY2024: 477
• One-offs consolidation Q3 FY2025: -, Q3 FY2024: -
• One-offs Standalone Q3 FY2025: -, Q3 FY2024: -
• Net Profit (Without exceptionals and one-offs) consolidation Q3 FY2025: 502, Q3 FY2024: 586
• Net Profit (Without exceptionals and one-offs) Standalone Q3 FY2025:342, Q3 FY2024: 477

Standalone Business Update

• Home Care has strong outperformance on Incense Sticks, impacted by poor season for Household Insecticides: Goodknight Agarbatti gained significant market share and premium formats are gaining share despite urban consumption slowdown.
• Air Fresheners delivers consistent double-digit growth and Mini Aer Pocket was launched in few states of South India at ₹30 and Aer Spray has been re-launched at ₹99 across India.
• Fabric Care shows strong performance with double-digit volume growth and Godrej Fab has been scaled up nationally.
• Personal Care is impacted by the rise of inflation in palm.
• Hair Colours volumes grew in mid-single digit, Godrej Expert Rich Crème access packs continue to perform well and grow in double-digit, and Shampoo Hair Colour volumes growth is at trong double-digit
• Sexual Wellness delivers strong performance with double-digit growth and continues to gain market share

International Business Update: Indonesia

• Constant Currency sales growth of 8% and INR sales growth of 9%.
• UVG delivered at 6%.
• EBITDA margin is 21.5%, up ~60 bps year-on-year.
• Shampoo Hair Colour and Stella Pocket deliver strong performance.
• Hair Colours recorded strong double-digit volume growth, driven by Shampoo Hair Colour and Household Insecticides delivered teens volume growth on a 2-year CAGR

International Business Update: Africa, USA and Middle East

• Consistent growth in INR profit
• Improvement in margin

Dow Jones Sustainability Index (DJSI) 2024

• GCPL attained spots in DJSI Index 2024 for Emerging Markets and DJSI World Index for Consumer Goods companies.
• GCPL scored the highest among Indian companies and is ranked 2nd highest globally.
• Commitment: Make one-third of products greener than those in 2020, be Net Zero (scope 1 & 2) by 2035, remain water positive and double energy productivity by 2035.

ESG Targets for FY2025-26 and Q2 FY2025 Performance

• Ensure efficient waste management systems for 7 municipalities in India diverting over 8,000 MT of waste from landfills, and current projects have diverted over 10,218 MT of waste.

Shares

• Shareholding Pattern as of December 31, 2024: Promoters 53.0%, FII 20.2%, DII 10.8%, Others 16.0%.

Other Updates

• GCPL is issuing Optionally Convertible Redeemable Preference Shares (OCRPS) to GCPL and employees of Godrej Industries Group, with OCRPS holders expected to hold up to 10% of total shareholding post conversion.
• The Key Management Personnel and Management teams at GCPL are given Employee Stock Options under Company Scheme(s) as part of the total rewards.
• The allotment of Equity Shares comes with a tax outflow which is normally at the highest marginal income tax slab. Employees need to fund the tax payout.
• Year Ended Date Cumulative shares plan to be sold as % of cumulative original allotment as on 31st March of the year ending is below 30%