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Informist, Tuesday, Oct. 8, 2024

--Godrej Consumer:See Jul-Sept consol EBITDA growth dn on high palm oil prices 

--Godrej Consumer:See Jul-Sept consol EBITDA growth dn on competitive pressures 

--Godrej Consumer: See high single digit underlying volume, value growth 

--Godrej Consumer: Expect mid single digit INR sales growth on consol level 

MUMBAI – Godrej Consumer Products Ltd. Monday announced its quarterly update for Jul-Sept in an exchange notification. The company expects Jul-Sept consolidated earnings before interest, tax, depreciation and amortisation growth to be low due to high palm oil prices and other competitive pressures. The company said palm oil prices have been rising since March and have risen in the high teens as of date. The company expects its standalone business to have high single digit underlying volume and value growth.

The company expects the standalone EBITDA growth of the company to be flat as the management has decided not to pass on the entire cost hike to consumers in one step and continue investments in the long-term growth initiatives like the rural van program, new category development, among others. 

Godrej expects mid-single digit sales growth in rupee terms, low-teens constant currency sales growth and mid-single-digit EBITDA growth at a consolidated level. The company expects the Indonesian business to deliver high-single digit volume growth and double-digit sales growth in constant currency. The company expects its Africa, US and West Asia consolidated business to have a single-digit volume decline due to reduction in trade stocks and portfolio simplification. The company said although the currency unification in Nigeria could negatively impact sales, its EBITDA, in rupee terms, has grown in strong double-digits. This will be the third consecutive quarter of profit growth, in rupee terms, along with a significant improvement in margin. 

The company reported a consolidated net profit of INR 4.51 billion on consolidated revenues of INR 33.32 billion for the June quarter. Shares of Godrej Consumer on Monday closed at INR 1,332.35 on the National Stock Exchange, down 0.8%.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Ayushman Mishra

Edited by Namrata Rao

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