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Informist, Thursday, Aug. 7, 2025

 

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--Godrej Consumer: See soap margins improve from Q3 on lower palm oil cost 
--CONTEXT: Godrej Consumer mgmt's comments at post-earnings analyst concall 
--Godrej Consumer: Retaining and increasing mkt shr most important for co 
--Godrej Consumer: See big opportunity globally for Aer air freshener brand 
--Godrej Consumer: Reduced some pdt prices in Apr-Jun to aid volume growth 
--Godrej Consumer: Q1 mkt shr gain in soaps lower as compared to usual gain

 

By Gopika Balasubramanium

 

MUMBAI – Godrej Consumer Products Ltd.'s  main focus currently is to gain more market share for its core products and it expects its soap margins to improve from Oct-Dec aided by lower palm oil prices, the management said in a post-earnings concall with analysts. The company's executives also said one of their main objectives is to defend their market share in Indonesia amid a macroeconomic slowdown in that country, discounting, and price-led competition. The company also said its air freshner segment, Godrej Aer, has done really well in India and it sees a big opportunity for growth going ahead.

 

In the June quarter, the soap segment faced a roadblock due to seasonal changes, resulting in a slower rise in market share than usual. The company said it will benefit from the government's cut in import duty on crude edible oils, which include palm oil, a key raw material for its products.

 

The company said its soaps business, which has large exposure in north India, suffered because of the shortened summer. "We had a really poor May in north India and, you know, 70% of our business comes from north India," the management said. Godrej Consumer also said it expects growth in soap volumes to be in the low single digit in a long-term perspective.

 

On its other core categories, the company said it has gained market share, especially in household insecticides, "electrics", and air fresheners. In air fresheners, the company said it has done well in India and across the world, too. Godrej Consumer sells its air fresheners, branded Godrej Aer, in markets across Africa and has received a positive response, it said. 

 

The liquid detergent Godrej Fab also emerged as a product with higher growth, the company said. "Fab continues to do extremely well for us, it is sequentially gaining share," it said. "It is, you know, much loved by consumers and it is heading towards unprecedented levels of revenue in FY26 (financial year 2025-26)".

 

The sales volume of household insecticide, sold under the Godrej Hit brand, grew in the high single digit in the June quarter. The company said the early monsoon did not have a positive impact on this segment but it nevertheless saw growth on a sequential basis. "So I don't think we got any particular benefit in terms of household insecticide in terms of season this quarter, ...did a little bit last quarter which was in Q4 (Jan-Mar)," a senior executive said. Within the segment, premium categories have done well, the management added.

 

In the June quarter, the company cut prices of some products to boost volume growth, especially in the non-soap category. For instance, Godrej Consumer brought down prices of aerosol products used to control crawling and flying insects. It also reduced prices of its hair colour products sold under the brand Rich Creme, cutting prices by 5% for bigger packs.

 

The company's Indonesia business was hit by macroeconomic headwinds and competitive pricing pressures, Godrej Consumer said. "However, we expect this to be transitory in nature with the situation improving in a few months," it said. It also said the pressure on its Indonesia business margins is likely to ease in 2-3 years as the company is investing to combat pricing competition.

 

The company released its earnings after market hours Thursday. It reported a consolidated net profit of INR 4.52 billion on a revenue of INR 36.62 billion. Shares of the company closed at INR 1,220 on the National Stock Exchange, up 1.5%.  End

 

Edited by Rajeev Pai

 

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