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Godrej Consumer Q4 Review - Playbook Remains Unchanged; Positive Outcomes Set To Continue: Motilal Oswal

Strong volume-driven performance
08-05-2024

Q4FY24 Quarterly & FY24 Annual Result Announced for Godrej Consumer Products Ltd.

Personal products company Godrej Consumer Products announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Q4FY24 Consolidated volume grew at 12%, sales grew by 6% in Rs terms impacted by devaluation, constant currency growth of 30% YoY India business volume grew by 15%, sales grew by 12% YoY Indonesia volume grew by 12%, sales grew by 15% in Rs terms and 17% in constant currency terms, YoY Africa, USA, and Middle East sales grew by 16% in constant currency terms but declined by 23% in Rs terms, YoY Latin America and SAARC sales grew in constant currency and Rs terms, by 41%, YoY Q4FY24 Consolidated EBITDA grew by 18% YoY FY24 Financial Highlights: FY24 Consolidated volume grew at 10%, sales grew by 6% in Rs terms impacted by devaluation, constant currency growth of 21% YoY India business volume grew by 13%, sales grew by 10% YoY Indonesia volume grew by 11%, sales grew by 14% in Rs terms and 13% in constant currency terms, YoY Africa, USA, and Middle East sales grew by 16% in constant currency terms but declined by 7% in Rs terms, YoY Latin America and SAARC sales grew in constant currency and Rs terms, by 5%, YoY FY24 Consolidated EBITDA grew by 21% YoY Commenting on the business performance, Sudhir Sitapati, Managing Director, and CEO, GCPL, said: "We delivered a strong performance for all four quarters in FY 2024, despite challenging conditions across markets. Our Consolidated organic volumes for Q4FY24 grew by 9%, led by the India business growing volumes at 7% and Indonesia growing volumes at 12%. This led to strong full-year organic volume growth delivery at 7% for our consolidated business, 6% for India, and 11% for Indonesia. Our Consolidated reported revenue growth for Q4 and FY 2024 both stood at 6%. Our quality of profit was good, on the back of superior growth in higher margin countries and categories. Our reported Consolidated gross margin in Q4 improved sharply by 340 bps year-on-year. Our EBITDA margin, too, improved by 225 bps year-on-year post step up in media investments, which increased by 50% year-on-year. This resulted in an annual growth in EBITDA* of 21%. We continue to remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability. We are launching new products in accordance with our purpose to bring the goodness of health and beauty to consumers. (1) Cinthol Foam Bodywash, has been launched in select markets in India in April at Rs 120. This product targets the fast-growing Bodywash segment that is currently ~Rs 700 crore and growing at more than 20% per annum. (2) Stella Electric Diffuser, which will be launched in Indonesia at IDR 35,000, is aimed at rapidly expanding the penetration of the Air Freshener category. This is the first of its kind product in Indonesia. We continue to improve the strength of our balance sheet. We have completed the re- organization in our East-Africa business. We are happy to report that there will be a positive impact on PAT of ~Rs 50 crore per annum despite the negative impact on revenue of ~Rs 470 crore per annum. We have taken an exceptional accounting charge of ~Rs 72,378 crore in our consolidated P&L; statement. The impact of this charge is cash positive. We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development. Based on the recommendation of the Nomination & Remuneration Committee, the Board has appointed Mr. Aditya Sehgal (DIN: 09693332) as the Non-Executive Independent Director of the Company for a period of five years with effect from July 15, 2024, subject to the approval of the shareholders in the ensuing Annual General Meeting. A short profile is attached herewith. We remain committed to our purpose of bringing the goodness of health and beauty to consumers in emeraina markets. Result PDF
07-05-2024

Godrej Consumer Shares Hit Record As It Calls Exceptional Loss Cash Positive

Godrej Consumer took an exceptional accounting charge of Rs 2,378 crore on its consolidated financials.
07-05-2024

GODREJ CONSUMER PRODUCTS LTD. - 532424 - Communication In Respect Of Deduction Of Tax At Source On Dividend