Godrej Consumer Products (GODREJCP) Q4 02/03 earnings summary

Executive summary

• FY2002-03 delivered 3% total sales growth to Rs.470.1 crore, 28% PAT growth to Rs.53.6 crore and 8% growth in branded sales to Rs.433.8 crore.

• Results came amid subdued sector growth and a challenging economic environment; management emphasized efficiency, consumer-focused innovation and growth in chosen categories.

Financial highlights

• Total income was Rs.477.4 crore vs. Rs.466.5 crore; PBDIT Rs.81.8 crore vs. Rs.77.1 crore; PBT Rs.70.1 crore vs. Rs.63.2 crore; PAT Rs.53.6 crore vs. Rs.42.0 crore.

• Net sales were Rs.470.1 crore, up 3%; branded sales rose 8% to Rs.433.8 crore, while contract manufacturing sales fell 59% to Rs.17.5 crore.

• Advertising and sales promotion expense declined to Rs.58.4 crore from Rs.66.8 crore; other expenditure increased to Rs.88.6 crore from Rs.76.2 crore.

Outlook and guidance

• For 2003-04, management expected consumer-centric initiatives to support growth in toilet soaps and expansion in hair colour and liquid detergents.

• Growth and profitability priorities included EVA-led efficiency, stronger sales and distribution, focused communication, international expansion and acquisition opportunities.

• Management pursued organic and inorganic opportunities expected to deliver EVA-positive returns over a medium-term framework.