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Informist, Tuesday, May 6, 2025

 

--Godrej Consumer Jan-Mar consol net profit INR 4.12 bln

--Analysts saw Godrej Consumer Jan-Mar consol net profit INR 4.85 bln

--Godrej Consumer Jan-Mar consol PAT INR 4.1 bln vs INR 18.9 bln loss yr ago

--Godrej Consumer Jan-Mar consol sales INR 35.98 bln vs INR 33.86 bln yr ago

--Godrej Consumer to pay INR 5 per share interim dividend for FY25

--Godrej Consumer FY25 consol PAT INR 18.52 bln vs INR 5.61 bln loss yr ago

--Godrej Consumer FY25 consol sales INR 143.64 bln vs INR 140.96 bln yr ago

--Godrej Consumer Jan-Mar advt, publicity cost INR 3.10 bln vs INR 3.06 bln

--Godrej Consumer Jan-Mar consol India revenue INR 21.85 bln vs INR 20.34 bln

--Godrej Consumer Jan-Mar consol Indonesia sales INR 5.04 bln vs INR 4.98 bln

--Godrej Consumer Jan-Mar consol Africa revenue INR 6.90 bln vs INR 5.94 bln

--Godrej Consumer Jan-Mar consol underlying volume growth 6% on year

--Godrej Consumer Jan-Mar Indonesia sales grew 1% YoY in constant currency

--Godrej Consumer Jan-Mar consol EBITDA grew 1% on year

 

By Avishek Rakshit

 

KOLKATA – Even though consumer demand in urban areas remained low, Godrej Consumer Products Ltd. registered a 6% growth in sales volume from its own brands and products in Jan-Mar. This helped the company to report its highest on-year growth in consolidated revenue in the past seven quarters, in line with the Street's expectations.

 

Consolidated sales for the March quarter, at INR 36 billion, grew by over 6% from INR 34 billion in the year-ago quarter. The consolidated net profit of a little over INR 4 billion, however, missed the Street's projections by 15%. The company had reported a consolidated net loss of INR 19 billion in the year-ago quarter mainly on account of exceptional items.

 

During the March quarter of 2024-25 (Apr-Mar), Godrej Consumer incurred INR 314 million as exceptional costs, and for the year ended March, such costs were INR 632 million, comprising supply chain restructuring cost on account of reorganisation drive in Africa and Chile, and business disruption in Mozambique. However, during FY24, the company bore a loss of INR 25 billion as an exceptional item, of which INR 24 billion was adjusted in the March quarter. It primarily consisted of INR 15 billion impairment loss towards brand and goodwill in its business in Africa, and loss on sale of subsidiaries and business in East Africa. The rest of the one-time loss was on account of severance pay, inventory loss, and costs involved related to acquisition of the consumer care business from Raymond Ltd. Thus, the net profit and loss for the quarter and year ended March are not comparable.

 

In a statement, the company said that its consolidated organic volumes for the March quarter grew by 6%, led by the India business growing volumes at 4% and Indonesia growing volumes at 5%. This led to the consolidated organic volume growing by 4% during FY25, with the Indian business growing by 5%, and the Indonesian business growing by 6% during FY25. Consolidated organic revenue growth for Jan-Mar and FY25 stood at 7% and 4%, respectively.

 

The company's revenue from India increased by over 7% on year to nearly INR 22 billion, and that from Indonesia grew by 1% on year in constant currency terms to INR 5 billion. The revenue from Africa increased by over 16% on year to nearly INR 7 billion. The consolidated earnings before interest, tax, depreciation, and amortisation during Jan-Mar grew by 1% on year, the company said.  

 

"Demand conditions in India have continued to be impacted by headwinds in urban consumption. Surge in palm oil prices by more than 50% is negatively impacting our EBITDA margin. Our reported Standalone EBITDA margin at 22.6% is lower than our normative margin," Sudhir Sitapati, managing director and chief executive officer of Godrej Consumer, said in the statement.

 

Sitapati, however, said that on account of a good season, the company had a blockbuster performance in household insecticides business, with volumes growing in strong double digit.

 

"Our categories of Air Fresheners, Laundry Liquids, etc. have continued to deliver strong underlying volume growth. This helped deliver 4% volume growth on top of a 4% pricing growth led largely by soaps. The volume growth on the non-soaps' portfolio was high single digit with soaps volume growth impacted by volume-price rebalancing," he said.

 

In the personal care category in India, sales volume of personal wash products declined by mid-high single digit during the quarter as a result of volume-price rebalancing. The volume decline, however, was compensated by high single digit pricing growth. Owing to the ongoing high procurement costs related to palm oil and its derivatives, the company has increased prices across its portfolio significantly which will keep margins under pressure in the foreseeable future. The handwash products registered strong double-digit volume growth, and hair colour volumes grew in mid-single digit.

 

Raw material costs during the quarter under review increased by around 11% on year to over INR 14 billion. Together with higher depreciation costs and purchase of stock-in trades, the total expenditure during the March quarter increased by nearly 9% on year to INR 30 billion.

 

"In Indonesia, we continue to consistently deliver healthy performance with 5% volume growth and EBITDA margin expansion. In organic terms, Africa, USA and the Middle East sales grew by a strong 23% in INR terms and delivered 17?ITDA margin resulting in the fifth consecutive quarter of profit and margin expansion," Sitapati said.

 

During FY25, Godrej Consumer's consolidated sales grew by around 2% on year to INR 144 billion and the consolidated net profit was over INR 18 billion against a loss of nearly INR 6 billion in the year-ago quarter. The company's board has approved an interim dividend of INR 5 per share for FY25.

 

On Tuesday, shares of Godrej Consumer closed 1% lower at INR 1,250.80 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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