Godrej Consumer Products Q4 Results 2022: Revenue grew by 6.77% for Q4FY22

On 19th May 2022,  Godrej Consumer Products announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22:

- The company's revenue from operations rose 6.77% to Rs.2915.82 Crores in the quarter under review from Rs.2730.74 Crores in the same quarter last fiscal.

- EBITDA stood at Rs.468 Crores from Rs.549 Crores in Q4FY21 saw a drop of 14.75%

- Godrej Consumer Products reported a net profit of Rs.363 Crores for Q4FY22

FY2022: 

- The company's revenue from operations rose by 10.64% to Rs.12276.5 Crores for the year from Rs.11095.69 Crores in FY2022.

- EBITDA stood at Rs.2395 Crores from Rs.2399 Crores in FY2021, seeing a growth of 0.166%

- Godrej Consumer Products reported a Net profit of Rs.1783 Crores for FY2022

Geographical Highlights:

INDIA:

- India sales grew by 9% to INR 1,604 crore; volume declined by 3% for Q4FY22.

- EBITDA grew by 14% to Rs.378 crore for Q4FY22.

- Net Profit without exceptions and one-off grew by 39% to INR 348 crore

INDONESIA:

- Indonesia's business delivered a weak performance with a sales decline of 16% in constant currency terms. 

- Sales excluding Hygiene (Saniter) saw a decline of 10% in constant currency terms. 

- EBITDA margins, though sequentially higher, contracted by 1,380 bps year-on-year due to higher commodity inflation, adverse mix, scale deleverage, and a high base.

AFRICA, USA AND MIDDLE EAST:

- Africa, USA, and Middle East cluster delivered a broad-based double-digit sales growth of 14% in constant currency terms (2-year CAGR of 24%). 

- The strong sales growth momentum continues in Southern Africa and West Africa. 

- Godrej Consumer Products is also seeing strong performance across categories and have continued building go-to-market initiatives in key markets.

- EBITDA margins decreased by 630 bps year-on-year primarily driven by a decline in gross margins.

Category Review:

Home Care:

- Home Care segment declined by 2% with a 2-year CAGR of 15%. 

- Godrej Consumer Products delivered a soft performance in Household Insecticides on the back of a high base and relatively muted season and continued to deepen penetration and gain market share by 50bps on a MAT basis. 

Personal Care 

- Personal Care grew by 20% with a 2-year CAGR of 27%. 

- Personal Wash & Hygiene maintained its growth momentum, delivering double-digit sales growth and a 2-year CAGR in double-digits. 

- Godrej Consumer Products gained market share by 60 bps on MAT basis and touched its highest ever value and volume market shares in Soaps. 

- Hair Color growth was steady with the 2-year CAGR in double digits. Godrej Expert Rich Crème continues to perform well and gain market share, backed by strong marketing campaigns.

Commenting on the business performance of 4Q FY 2022, Sudhir Sitapati, Managing Director and CEO, GCPL, said: We delivered a weak performance in 4Q FY 2022. Overall sales grew by 7% and our full-year sales grew in double-digits. However, this growth was driven by pricing. We continue to believe that with the relatively non-discretionary, mass pricing of our portfolio and very good performance on market shares, volume growth will return in the medium term. Our overall EBITDA declined by 9% (without one-offs) driven by unprecedented global commodity inflation and scale deleverage in Indonesia. PAT without exceptional items and one-offs declined by 4%. 

From a category perspective, we saw a strong performance in Personal Care, which grew by 18%. Home Care delivered a weak performance and declined by 7%. From a geographical perspective, India grew at 9%. Our Africa, USA and Middle East business continued its robust growth trajectory, growing at 15% in INR and 14% in constant currency terms. Performance in our Indonesian business was weak, declining by 15% in INR and 16% in constant currency terms. 

We continue to have a healthy balance sheet and our net debt to equity ratio continues to come down. We are on a journey to reduce inventory and wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development.”