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Fast-Moving Consumer Goods (FMCG) maker Godrej Consumer Products Ltd posted a 13.66 per cent increase in consolidated net profit at ₹.491 crore for the quarter that ended on September 30 as against ₹432 crore reported during the same quarter last year.
The company also reported a 9.1 per cent increase with ₹450 crore profit reported in the June quarter.
Total revenue from operations for the company grew 1.80 per cent to ₹3,666 crore in the September quarter as against ₹3,601 crore reported during the same quarter last year. Revenue also saw a 10.05 per cent increase as it had registered revenue of ₹3,331 crore reported in the quarter that ended in June.
Further, the company announced an interim dividend of ₹5 per share (500 per cent on equity shares of face value of ₹1 each) for the financial year 2024-25. The record date for ascertaining the names of the shareholders who will be entitled to receive the said dividend is Friday, November 1, 2024. The dividend will be paid on or before Saturday, November 23, 2024.
Godrej Consumer consolidated volume grew 5 per cent and sales grew 2 per cent, while the India business volume and sales grew by 7 per cent year-on-year. The home care segment grew 12 per cent, while the personal care segment grew 3 per cent.
A steady quarter
“GCPL has had a steady quarter given the headwinds of oil costs and tough consumer demand in India. Our standalone business grew by 7 per cent in volume and value and flat-reported EBITDA. Our standalone EBITDA margin at 24.3 per cent is at the lower end of our targeted band and is caused entirely by high inflation on palm oil. The already high prices were further exacerbated by the import duty on oil. We think this is a short-term hit and we will recover the margins through judicious price increases and stabilising of costs,” said Sudhir Sitapati, Managing Director and CEO of Godrej Consumer Products Ltd.
In the international business, the company’s volume grew 7 per cent in Indonesia, while sales grew 11 per cent in constant currency (CC) terms and 9 per cent INR terms. The US, Africa and West Asia sales were flat in constant currency terms and declines 10 per cent in INR terms due to currency volatility.
“While the overall quarter was 5 per cent organic UVG, 5 per cent organic USG and 8 per cent reported EBITDA, the topline performance in Asia and the bottom-line performance in our international businesses have been encouraging. High-single-digit volume growth during a period of low soap volume growth is testimony to the increasing strength of the rest of our portfolio. Particularly noteworthy are the continued growth of Air Care and the rapid scale-up of Laundry, Incense Sticks and Sexual Wellness. Our relaunch of Household Insecticides with the RNF molecule is showing clear green shoots in incense sticks and coils which were launched a few quarters earlier. Our focus is on continuing and improving our volume growth story while the palm oil price volatility plays out over the next few quarters,” added Sudhir.
| September 2024 | September 2023 | Change | |
|---|---|---|---|
| Profit/Loss | Rs.491 crore | Rs.432 crore | 13.6% |
| Revenue | Rs.3,666 crore | Rs.3,601 crore | 1.80% |
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