Godrej Consumer Products’s cons Q4FY08 net sales up by 12%

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Godrej Consumer Products’s cons Q4FY08 net sales up by 12%

This article was posted on Apr 28, 2008 and is filed under Press Releases

Godrej Consumer Products Ltd, one of the leading companies in the FMCG sector with a presence in the Personal & Household Care segment, today announced its audited financial results for the fourth quarter and financial year ended 31 March 2008.

Commenting on the results, Mr. Adi Godrej, Chairman and Managing Director, GCPL, said, “It has been an exciting year where we implemented several new initiatives and were able to post a growth-led financial performance.We witnessed an encouraging response to the relaunch of our flagship brand, Cinthol, in an attractive range of soaps, talc and deo sprays. The launch was supported with a strong 360 degree campaign to build a sustainable mind share with the consumer. In the hair colour category, we relaunched our Powder Hair Dye as ‘Godrej Expert Hair Dye’, which will enable us to strengthen our market position.

High raw material prices were the key challenge which we partially mitigated through increase in soap prices and good procurement management.

In our international operations, Keyline and Rapidol continue to do well and have contributed to our earnings for the year. We acquired Godrej Global Mideast FZE during October 2007, which will help us to consolidate our presence in the UAE and GCC countries. Another acquisition during April’08, our fourth in less than three years, was that of Kinky Group (Pty) Ltd, South Africa. Kinky provides us with an opportunity to enter into a new line of business and enabled us expand our hair product portfolio.

FINANCIAL OVERVIEW (Consolidated)

Q4 FY2007-08(January – March 2008) v/s Q4 FY2006-07(January – March 2007)

· Sales revenue (net of excise) increased by 12% to Rs. 271.8 crore from Rs.241.8 crore

· Profit before Interest, Depreciation and Tax (PBIDT) up 30% at Rs. 56.6 crore compared with Rs.43.7 crore

· Interest cost increased by 68% to Rs. 3.3 crore compared to Rs. 2.0 crore due to rise in loans availed towards new initiatives.

· Employee cost higher by 43% at Rs. 18.4 crore compared to Rs. 12.8 crore due to higher number of employees, increments and higher bonus.

· Profit Before Tax (PBT) higher by 32% at Rs. 48.9 crore as compared to Rs. 37.2 crore

· PAT increased by 33% to Rs. 40.8 crore from Rs. 30.8 crore

· EPS at Rs. 1.81 compared to Rs.1.74 (Not Annualized)

· The Board of Directors have recommended a 75% final and 75% interim dividend each and resulting in a total outflow of Rs. 42.5 crore including dividend distribution tax

Year end March ‘08(April 2007 – March 2008) v/s Year end March ‘07(April 2006 – March 2007)

· Sales revenue (net of excise) increased by 16% to Rs. 1,102.6 crore from Rs.951.5 crore

· Profit before Interest, Depreciation and Tax (PBIDT) up 20% at Rs. 218.5 crore compared with Rs.182.3 crore

· Profit Before Tax (PBT) higher by 18% at Rs. 187.4 crore as compared to Rs.158.5 crore

· PAT increased by 19% to Rs. 159.24 crore from Rs. 134.2 crore

· As a result the annualized EPS was Rs. 7.0 compared to Rs.6.4 in the previous year.

· Depreciation was up by 28% at Rs. 18.1 crore compared to Rs. 14.2 crore mainly on account of the new Katha and Sikkim factories becoming operational

· Total dividend for the year is at 400% (Rs.4 per share) or Rs. 108.53 crore including the recommendation of final dividend of 75% or Rs.0.75 per share.

· RoCE and RoNW ratios (on closing Capital Employed and Closing Net worth) continue to be high at 55% and 93% respectively
OPERATIONS

DOMESTIC BUSINESS:

FINANCIAL OVERVIEW (Standalone)

Q4 FY2007-08 (January – March 2008) v/s Q4 FY2006-07(January – March 2007)

· Sales revenue (net of excise) increased by 14% to Rs. 212.4 crore from Rs. 186.8 crore

· Profit before Interest, Depreciation and Tax (PBIDT) up 43% at Rs. 48.9 crore compared with Rs. 34.3 crore

· Other income increased by 106% to Rs. 3.4 crore compared to Rs. 1.7 crore on account of royalty fees from Rapidol Pty. Ltd. and interest on loan given to ESOP Trust.

· Interest cost increased by 96% to Rs. 2.1 crore compared to Rs. 1.1 crore due to rise in loans availed towards new initiatives.

· Employee cost higher by 62% at Rs. 14.6 crore compared to Rs. 9 crore due to higher number of employees, increments and higher bonus.

· Profit Before Tax (PBT) higher by 46% at Rs. 42.9 crore as compared to Rs. 29.4 crore

· PAT up by 47% at Rs. 37.1 crore compared to Rs.25.3 crore in Q4 FY2006-07

Year end March ‘08(April 2007 – March 2008) v/s Year end March ‘07(April 2006 – March 2007)

· Sales revenue (net of excise) increased by 17 % to Rs. 887.6 crore from Rs. 758.5 crore

· Profit before Interest, Depreciation and Tax (PBIDT) up 27% at Rs. 193.7 crore compared with Rs.152.7 crore

· Advertisement & Publicity expenditure was up by 14% at Rs. 61.4 crore compared to Rs. 53.8 crore

· Profit Before Tax (PBT) higher by 26 % at Rs. 169.2 crore as compared to Rs. 134.4 crore

· PAT increased by 26% to Rs. 148.1 crore from Rs. 117.2 crore

· EPS at Rs 6.56 compared to Rs. 5.85

Soaps

· GCPL continues to be the second largest toilet soaps player with a market share of 9.1% for Q4 FY2007-08.

· In March 2008, ‘Cinthol’, the Company’s flagship and popular brand unleashed ’24 hour confidence’ with its new range of soaps, talcs and deodrants. The new range of deo soaps is available in Cologne, Classic and Sport variants. Cinthol Fresh soap comprises active lime formula which creates an energizing bathing experience. The other Cinthol soaps contains TCC a special complete complexion care ingredient. This launch was carried out through an aggressive advertising campaign, with Hrithik Roshan as its brand ambassador.

· In Q1 FY 2007-08, GCPL introduced a new variant in Godrej No. 1 with Papaya and Lotus. With this launch, Godrej No. 1 is now available in seven variants. The soap continues to be the largest selling Grade 1 soap in the country. Godrej No.1 is the market leader in the states of Delhi, Uttaranchal, Punjab, Himachal Pradesh and Chandigarh.

· FairGlow soap continues to be the largest selling fairness soap in India.

· Due to an increase in the price of vegetable oil, the Company increased the prices of its soaps by 5-8% during Q1 FY2007-08 and Q3 FY2007-08.

Hair Colorants

· Market share stood at 35.1% for Q4 FY2007-08.

· The Company’s powder hair dye was relaunched as ‘Godrej Expert Powder Hair Dye’. This is available in 3gm for men at Rs. 9 and 6 gm for women at Rs.17.

· GCPL introduced Renew Powder Hair Colour during the year. This is a unique product in the hair colour segment. Renew Powder Hair Colour is available in four colours Burgundy, Auburn Red, Natural Dark Brown and Natural Black at a price of Rs. 20 per sachet in a carton pack containing three sachets of powder colour. The advertising features Ms.Katrina Kaif, a leading actor.

· Renew cream hair colour is now available in packs of 50 ml and 20 ml. 50 ml packs are available in packs of six colours and 20 ml packs are available in four colours. This product continues to receive an encouraging response from the consumers.

· “Renew Highlights” is another offering under the Renew brand. “Renew Highlights” is a home use kit for permanent highlights and is available in Red and Blonde colours.

Toiletries

· GCPL relaunced its entire ‘Cinthol’ range including talc and Deo Sprays. Cinthol talc was launched in an attractive new packing and is available in four variants namely sport, classic, smooth, and fresh and cologne. Cinthol Deo Spray was launched in four variants namely sport, cologne, musk and classic.

· The 7gm pack of the deluxe range of shaving cream continues to be the key growth driver in the segment.

Liquid detergents

· Market share stood at 81% for Q4 FY2007-08.

· During the year, Ezee was re-launched in new convenient bottles.

· Godrej Ezee has been accorded a distinctive status of a ‘Superbrand’ by the Superbrands Council. Godrej Ezee is the only premium fabric care brand to be awarded a Super Brand status.

INTERNATIONAL BUSINESS:

Godrej Netherlands B.V. (Consolidated)*

· Revenue for the quarter was GBP 5.9 million compared to GBP 5.7 million crore in the same quarter of the previous year. Revenue for year ended March 2008 was GBP 20.7 million compared to GBP 19.5 million in FY2006-07

· PAT for the quarter stood at GBP 0.49 million compared to GBP 0.48 million, in Q4 FY2006-07. PAT for year ended March 2008 was GBP 1.2 million compared to GBP 1.5 million for the year ended March 2007. This is mainly due to the higher investment in advertising & publicity.

· Keyline launched its first TV ad campaign for ‘Cuticura’ brand during the year

· Cuticura’s hand hygiene range continues to be the market leader.

* Comprises Performance of Godrej Netherlands BV, Godrej Consumer Products (UK) Limited, Keyline Brands Limited, Inecto Limited & Inecto Manufacturing Limited

Rapidol Pty Ltd. **

· Sales for the quarter were ZAR 20.6 million as compared to ZAR 16.6 million in the same quarter of the previous year. Revenues for the year ended March 2008 was ZAR 82.4 million compared to ZAR 44.9 million in FY2006-07.

· PAT for the quarter was ZAR 2.7 million compared to ZAR 1.1 million in Q4 FY2006-07. PAT was ZAR 9.5 million for the year ended March 2008 compared to ZAR 4.8 million for the year ended March ‘07

· Rapidol’s Inecto brand continues to do well and was relaunched in an attractive new packaging during the year

· Rapidol launched powder hair colour in South Africa. It sources Inecto Powder Hair colour in 10 gms bottles from GCPL India.

** Note: Revenue and PAT for FY2007-08 strictly not comparable with FY2006-07 figures since Rapidol was acquired w.e.f. September 1, 2006

Godrej Global Mideast FZE (GGME) #

· GCPL acquired GGME on October 1, 2007

· GGME is a 100% subsidiary of Godrej International Ltd and distributes its soaps, hair colours and toiletries in the GCC countries

· Sales for the quarter under review were AED 2.6 million and for the year were AED 4.5 million

· Q4 FY2007-08 PAT was AED 0.09 million and for the year ended March 2008 was AED 0.16 million

# Note: Revenue and PAT for FY2007-08 represents performance w.e.f. October 1, 2007

Godrej SCA Hygiene Ltd.

· During October 2007, the Snuggy brand was relaunched as ‘Snuggy Dry’ in the states of Kerala and Tamil Nadu. Snuggy Dry has a unique absorption formula and a cloth like feel.

· Godrej SCA Hygiene Ltd. introduced “Libero” baby diapers in top 50 cities across India in packs of 2s, 5s and 10s and “Tena” incontinent diapers, a world leader in absorbent incontinence products

· Godrej SCA Hygiene, has launched its Sanitary Napkin Brand ‘Libresse‘ in India, from SCA’s global portfolio. The following packs have been launched: Classic Regulars (8+1 pack), Classic Singles (10 pcs pack), Extra Thick Regular with wings (8 pcs pack), Extra Thick Large (8 pcs pack), Ultra Thin (8 pcs pack)

· Godrej SCA Hygiene Ltd. has procured 10 acres of land at Sinnar, Nasik for construction of its factory

Kinky Group (Proprietary) Ltd. (Kinky)

· GCPL completed the acquisition of Kinky Group (Proprietary) Ltd. on April 1, 2008

· Kinky sells a variety of products which include hair, hair braids, hair pieces, wigs and wefted pieces along with hair accessories like styling gels, hair sprays and oil free shampoo.

· Kinky products are manufactured at plants located in South Africa at Johannesburg and Durban and the final products are sold through cash n carry outlets and owned stores.

Sourced From: Perfect Relations Limited

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