Godrej Consumer Products (GODREJCP) Q4 06/07 earnings summary

Executive summary

• FY 2006-07 consolidated net sales rose 36% to Rs. 953.2 crore; net profit after extraordinary items increased 19% to Rs. 144.0 crore.

• Growth reflected strong domestic brands, Keyline and Rapidol acquisitions, new capacity and expansion into feminine hygiene through a 50:50 SCA joint venture.

Financial highlights

• Consolidated PBDIT increased 22% to Rs. 182.3 crore; PBIT was Rs. 168.1 crore and PBT Rs. 158.5 crore.

• Consolidated net profit was Rs. 144.0 crore vs Rs. 121.3 crore; reported EPS rose to Rs. 6.4 from Rs. 5.4.

• Consolidated net profit included a Rs. 5.0 crore extraordinary item and Rs. 4.8 crore prior-year tax adjustment.

• Standalone net sales increased 15% to Rs. 758.5 crore; standalone net profit after extraordinary item and tax adjustments was Rs. 132.1 crore.

Outlook and guidance

• FY 2007-08 priorities: leverage expanded scale and new geographies, build growth and profits, and pursue organic and inorganic opportunities.

• Growth plans include product and process improvements, entry into new categories and geographies, and building on consumer spending growth.