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Informist, Thursday, Aug. 7, 2025

 

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--Godrej Consumer Apr-Jun consol net profit INR 4.52 bln 
--Analysts saw Godrej Consumer Apr-Jun consol net profit at INR 4.86 bln 
--Godrej Consumer Apr-Jun consol PAT INR 4.52 bln vs INR 4.51 bln year ago 
--Godrej Consumer Apr-Jun consol revenue INR 36.62 bln vs INR 33.32 bln 
--Godrej Consumer to pay INR 5 per share interim dividend 
--Godrej Consumer interim dividend record date is Wed, Aug 13 
--Godrej Consumer Apr-Jun consol India revenue INR 23.30 bln vs INR 21.63 bln 
--Godrej Consumer Apr-Jun consol Indonesia sales INR 4.48 bln vs INR 4.65 bln 
--Godrej Consumer Apr-Jun consol Africa revenue INR 7.07 bln vs INR 5.45 bln 
--Godrej Consumer: Apr-Jun consol revenue up 11% on year in constant currency 
--Godrej Consumer Apr-Jun consol underlying volume rose 8% on year 
--Godrej Consumer Apr-Jun consol EBITDA down 3% on year 
--Godrej Consumer Q1 consol operating EBITDA margin 19.2% 
--Godrej Consumer Q1 Indonesia operating EBITDA margin 21% 
--Godrej Consumer: Q1 home care underlying volume grew in high single digit 

--Godrej Consumer: Home care saw strong mkt share gain across key portfolios
--Godrej Consumer: On track to deliver 200 bps of savings in media investments
--Godrej Consumer: Apr-Jun Indonesia ops hit by macro headwinds
--Godrej Consumer: Apr-Jun Indonesia ops hit by competitive pricing pressures
--Godrej Consumer: Oct-Mar performance expected to be better than Apr-Sept
--Godrej Consumer: Expect EBITDA margin to improve in Oct-Mar
--Godrej Consumer: To realise benefits of palm oil price moderation only in H2

 

By Pallavi Singhal

 

NEW DELHI – Despite an 8% on-year underlying volume growth and a 10% growth in its net sales in the June quarter, Godrej Consumer Products Ltd.'s net profit fell short of Street estimates due to a steep rise in the cost of raw materials consumed, including packing material. The company's expenditure on raw materials rose sharply by 15% on year, the profit and loss statement showed. 

The company's consolidated net profit was marginally up at INR 4.52 billion in Apr-Jun, but was below the Street's projection of INR 4.86 billion. However, the company's consolidated revenue for the quarter rose 10% on year to INR 36.6 billion.  

 

During the June quarter, Godrej Consumer incurred total expenses of INR 31.13 billion, up 13.4% on year. This was primarily due to a steep rise in the cost of materials, which comprises almost 50% of the total expense. The cost of raw materials rose 15% to INR 14.8 billion in Apr-Jun. Even as its advertising expenses fell 5% to INR 3.18 billion, its cost for purchasing stock-in-trade grew 60% on year to INR 3.4 billion. Its employee benefit expenses were also up over 10% at INR 3 billion. 

 

The company's consolidated revenue performance for Apr-Jun showed growth in certain regions. In India, revenue increased to INR 23.30 billion, up from INR 21.63 billion in the same period last year. However, in Indonesia, sales slightly decreased to INR 4.48 billion from INR 4.65 billion a year ago. On the other hand, Africa saw significant revenue growth, rising to INR 7.07 billion in Apr-Jun from INR 5.45 billion a year ago.

 

In a statement, the company attributed the growth to its standalone portfolio, excluding soaps, saying it "had delivered an excellent performance, delivering an underlying volume growth around teens, led by robust broad-based performance." The company noted that its international business had been impacted due to macro headwinds and competitive pricing pressures in Indonesia. "However, we expect this to be transitory in nature with the situation likely to improve in a few months," the company said.

 

The loss, the statement added, was compensated by strong performance in Africa. "Our Africa business continued its solid performance with sales growing at 30% and EBITDA growing at 15%. We successfully launched Aer Pocket across all markets in Africa and are seeing an incredibly positive consumer response," the statement said.

 

In the Indian market, the company said it saw a robust performance in household insecticides segment, whose volumes were in high single digits, led by double-digit growth in electrics. "We have gained market share in electrics on the back of product relaunches and are very happy with the outcome of our actions. Air fresheners, laundry liquids, etc. have continued to deliver strong underlying volume growth," the statement said.

 

The company is on track to deliver 200 basis points of savings in media investments. "These savings are a result of better planning, automation and negotiations with a new agency," it said.

 

The company expects performance to improve in the second half of 2025-26 (Apr-Mar) compared to the first half. While palm oil prices started moderating towards the end of June, benefits of this moderation will only be realised in the second half of FY26, it said.

 

"We believe that we are on track to deliver mid-high-single digit underlying volume growth for our standalone business, high-single digit consolidated rupee revenue growth and double-digit consolidated EBITDA growth for the full year," the statement said, citing Managing Director and Chief Executive Officer Sudhir Sitapati. The company's consolidated earnings before interest, taxes, depreciation, and amortisation declined 3% on year to INR 6.95 billion. The company's operating margin stood at 19.2% for the quarter, while Indonesia's EBITDA margin was 21%.

 

Godrej Consumer Products has announced an interim dividend of INR 5 per share for FY26. The record date for the interim dividend is set for Wednesday. On Thursday, shares of Godrej Consumer closed 1.5% higher at INR 1,220 on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

 

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