Godrej Consumer Products (GODREJCP) Q4 08/09 earnings summary

Executive summary

• FY09 consolidated sales rose 26% to Rs.1,393 crore; net profit increased 8% to Rs.172.6 crore despite volatile markets and a slowing economy.

• Growth was driven by soaps, new product launches, broader rural distribution and international operations; cost-control initiatives and lower input prices supported the outlook.

Financial highlights

• Consolidated sales revenue, net of excise, was Rs.1,393 crore versus Rs.1,102.6 crore in FY08, up 26%.

• Consolidated net profit was Rs.172.6 crore versus Rs.159.2 crore, up 8%; consolidated EPS was Rs.6.8 versus Rs.7.1.

• Consolidated PBDIT was Rs.212.4 crore; consolidated PBT was Rs.209.2 crore and PAT was Rs.172.6 crore.

• Standalone sales rose 22% to Rs.1,084.3 crore; standalone PAT was Rs.160.9 crore, or Rs.161.5 crore after prior-year tax adjustments, and EPS was Rs.6.36 versus Rs.6.56.

Outlook and guidance

• FY10 outlook called for improved top- and bottom-line growth, supported by lower input prices, stronger rural reach, product expansion and efficiency measures.

• Margin gains from easing input costs were expected to fund higher advertising and promotion spending; strategic, accretive acquisitions and new geographies remained under consideration.

• Organic growth priorities were expanding product variety through consumer research and extending distribution domestically and internationally.