FMCG major, Godrej Consumer Products Limited (GCPL), on Tuesday reported 5 per cent growth in consolidated net profit to ₹527 crore in the quarter ended December 2021, compared with ₹502 crore profit during the same period last year. GCPL’s revenue from operations during the quarter grew by 8 per cent at ₹3,302 crore compared with ₹3,055 crore last year.
Commenting on the business performance of Q3 FY22, Sudhir Sitapati, Managing Director and CEO, GCPL, said, “We delivered a mixed performance in Q3FY22. While overall sales grew by 8 per cent, and we remain on track to achieve double-digit sales growth for the full year, it was driven by price-led growth. We believe that with the relatively non-discretionary, mass pricing of our portfolio and performance on market shares, volume growth will return in the medium term. On the other hand, while our overall EBITDA de-grew by 2 per cent and the quality of profits has improved. We have witnessed sequential expansion of consolidated gross margins of 0.7 per cent and higher Advertisement and Publicity spends of 0.9 per cent.”
According to the investor presentation, the company saw a steady sales growth of 8 per cent, Y-o-Y. GCPL saw steady growth in India 8 per cent, Africa, US and Middle East 12 per cent and Latin America and SAARC 19 per cent. The company witnessed a soft performance in Indonesia at 2 per cent degrowth.
The home care category grew by 3 per cent, whilst the personal care category saw a growth of 12 per cent.
“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 deploy this to drive profitable and sustainable volume growth across our portfolio through category development.” said Sitapati.