Mumbai: Godrej Consumer Products Limited (GCPL), a leading emerging markets FMCG company, today announced its financial results for the quarter ending March 31, 2023.
FINANCIAL OVERVIEW
4Q FY 2023 FINANCIAL PERFORMANCE SUMMARY:
• 4Q FY 2023 consolidated sales grew by 10% in INR led by volume growth of 6%; constant currency growth of 14% year-on-year
– India business sales grew by 12% year-on-year led by volume growth of 11%
– Indonesia sales grew by 8% in INR and 5% in constant currency terms, year-on-year; ex-Hygiene growth of 14% and 11% in INR and constant currency respectively
– Africa, USA and Middle East sales grew by 6% in INR and 8% in constant currency terms, year- on-year
– Latin America & SAARC sales declined by 3% in INR and grew by 64% in constant currency terms, year-on-year
• 4Q FY 2023 consolidated EBITDA grew by 32% year-on-year
• 4Q FY 2023 consolidated net profit grew by 29% year-on-year (without exceptional items and one- offs)
MANAGING DIRECTOR AND CEO’S COMMENTS
Commenting on the business performance of 4Q FY 2023, Sudhir Sitapati, Managing Director and CEO, GCPL, said:
We had a strong end to the year with volume-led double-digit sales growth in 4Q FY 2023. Consolidated sales grew by 10% in INR terms and 14% in constant currency terms. We have continued to witness sequential improvement in volume growth with 6% year-on-year increase in Q4. The performance was broad based with India Branded business delivering stellar volume growth of 13%, led by double-digit volume growth in both Home Care and Personal Care. In Indonesia, our core business performance continued to improve with ex-Hygiene growth of 11% in constant currency terms. The double-digit growth trajectory in our Africa, USA and Middle East business was temporarily impacted by election and demonetisation in Nigeria.
Our quality of profits has also been improving with Consolidated Gross Margin expansion of 180 bps quarter-on-quarter, 340 bps year-on-year and EBITDA Margin improvement of 360 bps year-on-year. We grew EBITDA by 32% year-on-year along with continued working media investments which saw a growth of 20% year-on-year. Our net profit without exceptional and one-offs increased by 29% year- on-year.
We expect to build on the current momentum and deliver volume-led growth along with upfront marketing investments and improvement in profitability. We continue to have a strong balance sheet. 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.
We remain committed to our purpose of bringing the goodness of health and beauty to consumers in emerging markets.
BUSINESS UPDATE – INDIA
Performance Highlights
• 4Q FY 2023 India sales grew by 12% to INR 1,789 crore; volume grew by 11%
• 4Q FY 2023 EBITDA grew by 26% to INR 475 crore
• 4Q FY 2023 Net Profit without exceptions and one-offs grew by 17% to INR 406 crore
Category Review Home Care
Home Care grew by 14%
• Household Insecticides continues to improve its growth trajectory, with growth in teens. Performance was broad based with both the mosquito and non-mosquito portfolio growing in double digits. We are scaling up distribution of access packs of Goodknight Liquid Vaporizer and HIT No-gas Spray. We continue to drive category adoption and penetration for long-term sustainable growth.
• Air Fresheners continue to consistently deliver strong double-digit growth. Aer continues to gain share and enjoy market leadership. Performance was led by robust growth in both Aer Pocket and Aer Matic. We continue to drive category development and relevance-building initiatives.
Personal Care
Personal Care grew by 17%
• Personal Wash delivers double-digit growth led by healthy volume growth. We continue to gain market share in Personal Wash. Magic Handwash grew double digits in volume terms.
• Hair Colour continues to consistently deliver strong double-digit growth. Growth was led by strong performance across formats. We launched an access pack of Godrej Selfie Shampoo Hair Colour at INR 15, predominantly in the South market.
BUSINESS UPDATE – INDONESIA
Core business performance improves in Indonesia with sales growth of 5% in constant currency terms. Sales, excluding Hygiene (Saniter), saw a growth of 11% in constant currency terms. Our EBITDA margins at 21.5% were flat year-on-year. We also completed the transition to a distributor model.
BUSINESS UPDATE – AFRICA, USA AND MIDDLE EAST
Our Africa, USA and Middle East cluster delivered high single-digit sales growth of 8% in constant currency terms. Performance was impacted by election and demonetisation in Nigeria; however, business saw recovery in March 2023. We continue to deliver double-digit sales growth in the FMCG category. EBITDA margins at 10% expanded by 860 bps year-on-year due to a lower base.
Sudhir Prajapati of HUL
