Godrej Oct-24

• Godrej Consumer Products Ltd. provided a performance update on unaudited financial results for the Quarter ended September 30, 2024
• The document contains forward-looking statements, and actual results may vary
• The company's operations could be affected by changes in industry structure, the political and economic environment in India and overseas, tax laws, import duties, litigation, and labour relations

The Goodness Manifesto

• The company aims to deliver health and beauty to consumers in emerging markets
• The company is focused on category development
• The company values trust, being bold, creating delight, showing respect and ownership
• Less is more, by prioritizing consumers instead of the business
• The company's measures include industry-beating UVG, more spending on brands, automation, and environmental impact reduction

Financial Performance

• Standalone UVG is up 7%
• Indonesia UVG is up 7%
• Consolidated EBITDA growth is up 8%
• Consolidated Underlying Volume Growth is up 5%
• Standalone Underlying Volume Growth is up 7%
• Net Sales (Consolidated) have increased 2% (5% organic) and Standalone Net Sales have increased 7%
• Net Sales (Constant Currency) increased 10% (14% organic)
• EBITDA is flat for standalone and up 8% consolidated
• Net Profit (Reported) declined (19%) Standalone but increased 14% Consolidated
• Net Profit without exceptionals and one-off items increased by 4% Standalone and 12% Consolidated
• Standalone sales increased 7% with sales of ₹2,278 crore
• Indonesia sales increased 9% (11% constant currency) with sales of ₹513 crore
• Africa, USA & Middle East sales decreased (21%) reported and (10%) organic, with sales of ₹643 crore
• Latin America and other sales increased 36% (145% constant currency) with sales of ₹246 crore
• Total Net Sales increased 2% reported (5% organic and 10/14% constant currency), with sales of ₹3,647 crore
• Reported Q2FY25 Operating EBITDA margin: Consolidated is 20.8%, Standalone 24.3%, Indonesia 19.4%, Africa USA & Middle East 14.4%, Latin America & Others 5.7%
• Change in EBITDA margin (bps) (y-y): Consolidated +110, Standalone (160), Indonesia +140, Africa USA & Middle East +590, Latin America & Others +660
• Net Profit values are in crore and rounded off
• Net Profit (Reported) for Q2 FY2025 is 491 Consolidated and 393 Standalone, and 433 Consolidated and 485 Standalone for Q2 FY2024
• Net Profit (Without exceptionals) for Q2 FY2025 is 497 Consolidated and 393 Standalone, and 443 Consolidated and 485 Standalone for Q2 FY2024
• Net Profit (Without exceptionals and one-offs) for Q2 FY2025 is 497 Consolidated and 393 Standalone, and 443 Consolidated and 379 Standalone for Q2 FY2024

Standalone Business

• Household Insecticides grew in mid-single digits in volume terms
• The new Liquid Vaporizer has received positive feedback and will take 1-2 quarters for complete distribution
• Goodknight Agarbatti is performing well and gaining market share
• Air Fresheners maintain consistent double-digit growth, market share gain, and market leadership
• Aer O continues to outperform and gain market share
• Fabric Care reported strong double-digit volume growth
• Genteel and Godrej Fab are performing well and gaining market share
• Personal Wash achieved flattish volume growth and continues to gain market share
• Magic Handwash delivers strong double-digit volume growth and gains market share
• Palm oil prices have increased in double digits since the start of the year
• Management has chosen not to pass the entire cost increase to consumers, which will limit growth in underlying prices and margins

Personal Care: GCPL

• GCPL is committed to providing high-quality soaps
• This has nearly doubled its soaps market share
• Hair Colours volume has grown in double-digits
• Godrej Expert Rich Crème access packs are outperforming
• Shampoo Hair Colour is growing in strong double-digits in volume
• Deodorants and sexual wellness products both delivered strong double-digit growth
• Sexual wellness maintains healthy performance and continues market share gains
• Home Care has achieved double-digit growth
• Home Care sales up 12% with sales of ₹1,016 crore
• Personal Care sales up 3%
• Total Branded sales are up 7%
• Unbranded and Exports sales are up 21% with sales of ₹86 crore
• Total Net Sales are up 7% with sales of ₹2,278 crore

International Business

• Indonesia's constant currency sales are up 11%, with 9% INR sales growth
• Indonesia delivered 7% UVG
• Indonesia maintained continued improvement in margin
• EBITDA margin up ~140 bps year-on-year
• Stella's volume grew in strong double-digits due to focused media and marketing
• Stella Electric Diffuser is gaining market share
• Hair Colours recorded strong double-digit volume growth, driven by Shampoo Hair Colour
• Household Insecticides recorded healthy mid-teens volume growth on a 2-year CAGR
• Third consecutive quarter of significant INR profit growth and margin expansion in Africa, USA & Middle East
• Q4FY24 EBITDA was ₹85 crore, increasing +56% y-y
• Q1FY25 EBITDA was ₹78 crore, increasing +19% y-y
• Q2FY25 EBITDA was ₹93 crore, increasing +33% y-y
• EBITDA margin % has been consistent for the last 3 Quarters, at 14.4%, with a previous 5 year average of ~8.5%
• International business* EBITDA margin % is projected to increase to 16% in H1FY25

Environmental, Social and Governance (ESG)

• Goals for FY2025-26 and Q1 FY2025 performance
• Waste management systems are being implemented for 7 municipalities in India to divert waste from landfills
• Ongoing waste management projects are in 4 municipalities and have diverted over 8,300 MT of waste
• Reduce packaging by 20%, and 80% plastic recyclability is aimed to be achieved
• Plastic intensity is now reduced by 22%
• 30% recycled plastic by the fiscal year 2025-26 for rigid plastics
• 10% recycled plastic by the fiscal year 2026-27 for flexible plastics
• 5% recycled plastic by the fiscal year 2026-27 for multi-layer plastics
• One-third of all greener products than in 2020, conducting lifecycle assessments (LCA) for major products (80% coverage by revenue)
• Completed LCAs cover 60% of revenues
• 75% of GCPL suppliers in India and 50% in other locations follow sustainable supply chain policy
• 76% of India suppliers (by spend volume) are covered under the Sustainable Supply Chain Policy and assessed for FY24
• 100% of paper packaging will be sourced from sustainable sources
• Emission intensity reduction of 45% and carbon neutrality for scopes 1 and 2 starting from FY11 baseline
• 48% reduction in GHG emission intensity has already been achieved
• 40% reduction in specific energy consumption from FY11 baseline
• Achieved to now a 39% reduction in specific energy consumption
• Achieve 35% renewables in energy mix
• Renewables make up to now 29% of all energy
• Maintain 40% reduction in water intensity while maintaining water positivity
• Achieved so far a 35% reduction in water intensity
• Achieve zero liquid discharge and maintain zero waste to landfill
• Continuing to be zero waste to landfill, maintaining liquid discharge at 90%
• Announce our commitment towards the global Science Based Targets initiative (SBTi) and publish our roadmap and targets for emissions reduction
• Re-evaluating Scope 3 emissions and resubmitting findings for SBTi validation. internal Scope 1 and 2 Net-zero by 2035, inline with SBTi.
• Achieved 100% EPR compliance; plastic neutral and 100% EPR compliant
• Skills empowerment for women and communities
• Skill 60,000 women in beauty across international locations
• Trained 24,565 women beauty entrepreneurs in India and Africa
• Protect 30 million against vector-borne diseases
• Reached 28.4 million people. -Trained 4K public health workers
• Carbon and water nature balancing with protecting from diseases
• Developed 3K hectares of land for water and management
• Treating 2950 hectare of land, with 9.2 million m3 Water sequestrated in return to save GСPL´s annual global water use
• Over 5000 tСO2 emission are captured in nature initiatives that equals 25% of the global emissions for first quarter
• Shareholding Pattern as of September 30, 2024
• Promoters hold 62.5%
• FII holds 21.7%
• DII holds 9.4%
• Others hold 6.4%
• Contact information is available for institutional and retail investors