Brands
Godrej Consumer Products Ad & Publicity spends up in Q3-17
BENGALURU: Leading emerging markets FMCG player Godrej Consumer Products Limited (GCPL) increased its advertising and publicity expenses for the quarter and nine month period for the period ended 31 December 2016 (Q3-17, current quarter, 9M-17, YTD respectively) as compared to the respective periods of the previous year. The company spent 11.9 percent more towards this expense head at Rs 191.94 crore in Q3-17 as compared to Rs 171.53 crore in Q3-16. In 9M-17, GCPL spent 9.3 percent more at Rs 563.03 crore as compared to Rs 515.15 crore in the corresponding nine month period of the previous year.
While in terms of absolute rupees advertising and publicity spends increased in Q3-17 and 9M-17 as compared to Q3-16 and 9M-16 respectively, in terms of percentage of Total Income from Operations or TIO, YTD the percentage was constant at 7.9 percent. In Q3-17, the company’s ad and publicity spends were 7.7 percent of TIO, while in Q3-16 they were 7.5 percent of TIO.
Please refer to the figure below.
The company in its earnings release says that Q3-17 consolidated constant currency net sales increased by 12 percent year-on-year during which India business primary sales were flat while secondary sales increased by 2 percent on year-on-year basis despite demonetisation challenges, while international business sales grew by 28 percent year-on-year, on a constant currency basis.
On an actual basis, GPCL TIO increased 8.8 percent y-o-y to Rs 2,485.77 crore in Q3-17 from Rs 2,285.74 crore in Q3-16. Profit after tax (PAT) in the current quarter declined 4.3 percent y-o-y to Rs 351.78 crore (14.2 percent of TIO) from Rs 367.75 crore (16.1 percent of TIO). The company says that Q3-17 consolidated net profit and EPS, without exceptional items, increased by 5 percent.
In itsIndia business review GCPL shared the following insights:
Household Insecticides
Household Insecticides delivered a relatively resilient performance with sales decline of 2 percent. The company says that it made healthy media investments during the quarter and gained market share. It says that it is also driving improvements in penetration rates led by innovative launches, awareness creating campaigns and activations.
Soaps
Soaps performance improved sequentially as primary sales declined by 6 percent with a high single digit decline in volume terms. This decline in volume was partly driven by the transient effect of the withdrawal of promotions, price increases and adverse impact of demonetisation. GCPL says that it has initiated selective price increases in our portfolio and are scaling back consumer and trade offers.
Hair Colours
Hair Colours primary sales declined by 2 percent, while crème continues to be a lead growth driver with strong double-digit growth. During the quarter, Godrej Expert Rich Crème reached its highest ever market share on an exit basis. GCPL says that its effective communication campaigns, along with competitive media investments, have widened Godrej Expert Rich Crème’s distribution and penetration lead over competition.
Liquid Detergents
Liquid Detergents saw a reasonable growth performance. Primary sales increased by 2 percent, despite a delayed winter and demonetisation. Demand was to some extent impacted by demonetisation, given the semi-discretionary nature of the category.
Air Fresheners
GCPL says that Godrej aer now ranks number 2 in the overall air care market. We continue to gain share, aided by innovations and strong execution.
Health and Wellness
GCPL says that its Health and Wellness portfolio of hand washes and hand sanitiser, under Godrej protekt, has been successfully introduced in general trade.
CintholDeo stick
The recently launched Cintholdeo stick for men and women has been well received by consumers. Godrej plans to continue to support this launch with innovative consumer engagement initiatives and impactful communication.
Company speak
Commenting on the financial performance of Q3-17, GPCL chairman Adi Godrej said, “Despite a tough operating environment, we continued to deliver ahead-of-the-market profitable growth. Our 3QFY17 consolidated constant currency sales increased 12 percentand constant currency EBITDA increased 17 percent. We continue to deliver EBITDA growth ahead of sales growth, despite a strong base from the previous year.
In India, while demonetisation has resulted in some near-term disruptions, we have outperformed the overall market with secondary sales growth of 2 percent during the quarter. Our go to market approach has been resilient and dynamic. We have been disciplined in our execution and have worked closely with our trade and retail partners to deal with the situation. We have also invested competitively in brand building and innovations. Through our focus on operating efficiencies and judicious cost management, our EBITDA, too, has increased by 15 percent.
Our International business, too, performed well with revenue growth of 28 percent and EBITDA growth of 19 percent, in constant currency terms, led by continued strong performance in Africa.
Going forward, remonetisation should result in growth normalising in India over the next few months. In FY-18, implementation of the GST will provide strong momentum for a much better economic environment and stronger consumer demand.
We are relentlessly focusing on our strategy and continuing to invest in building a sustainable platform for the future. At the same time, we are driving our core to full potential, ensuring execution excellence and building on our agile and high performance culture.”
Brands
UK’s OnlyFans seeks US investor at $3bn valuation after owner’s death
The adult video platform is seeking stability after the death of its billionaire owner
LONDON: OnlyFans is looking for a new partner. The London-based adult video platform is in advanced talks to sell a minority stake of less than 20 per cent to Architect Capital, a San Francisco-based investment firm, in a deal that would value the business at more than $3bn (£2.2bn).
The move is driven by an urgent need for stability. Leonid Radvinsky, the Ukrainian-American billionaire who owned OnlyFans, died of cancer last month at the age of 43, leaving the future of one of Britain’s most profitable privately held businesses suddenly uncertain.
The choice of Architect Capital is not arbitrary. The firm has deep expertise in financial services, which aligns neatly with OnlyFans’ ambitions to offer banking products to its creators, many of whom have long struggled to access basic financial services because of the nature of their work.
The numbers behind OnlyFans are, by any measure, staggering. The platform posted revenues of $1.4bn in the year to 30th November 2024, with a pre-tax profit of $684m, up four per cent on the prior year. Payments to creators totalled $7.2bn over the same period, a rise of nearly ten per cent. Radvinsky personally collected $701m in dividends from the business in 2024 alone, on top of more than $1bn in such payments he had already received. The platform, run through its parent company Felix International, hosts 4.6m creator accounts, with performers keeping 80 per cent of subscription proceeds and the platform pocketing the remaining 20 per cent. It has 377m fan accounts in total.
The current minority stake talks represent a notable scaling back of ambitions. In January, OnlyFans was reported to be in discussions with Architect about selling a majority stake of 60 per cent. Before that, the company had explored a sale to a consortium led by Forest Road Company, a Los Angeles-based investment firm. Neither deal materialised.
OnlyFans has built an enormously lucrative business on content that mainstream finance has long refused to touch. Now, with its owner gone and a $3bn valuation on the table, it is looking for the kind of respectable institutional backing that might finally persuade the banks to take its calls.
