Godrej Consumer Q2 net profit rises 13% to Rs 491 cr, firm declares Rs 5 interim dividend

Godrej Consumer Products Q2FY25 Results

Godrej Consumer Products Limited (GCPL) on October 24 reported 13% rise in net profit at Rs 491 crore for the quarter ended September 30, 2024. It reported net profit of Rs 433 crore for the year-ago period.

The company's revenue from operations rose 2% to Rs 3,666 crore in Q2FY25 as compared to Rs 3,602 crore in Q2FY24.

EBITDA grew by 8% year-on-year for Q2 FY25.

The company announced an interim dividend of Rs 5 per share.

Sudhir Sitapati, Managing Director and CEO, GCPL, said, "GCPL has had a steady quarter given the headwinds of oil costs and tough consumer demand in India. Our Standalone business grew by 7 percent in both volume and value and flat reported EBITDA. Our standalone EBITDA margin at 24.3 percent 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 increase and stabilising of costs."

The Home Care segment grew by 12 percent overall. Household insecticide volume growth was in the mid-single digits. The Liquid Vaporiser's full distribution is expected in one to two quarters. Goodknight Agarbatti is performing well and increasing market share against illegal incense sticks.

Air Fresheners witnessed strong double-digit volume growth. Aer O is particularly outperforming in this category.

Fabric Care delivered strong double-digit volume growth. Brands like Genteel and Godrej Fab are performing very well and gaining market share.

Personal Care segment grew by three percent overall. Personal Wash volume remains flattish.

"The category faces higher-than-anticipated inflation in palm oil, leading to margin erosion expected to continue for the remainder of the year. Historical trends indicate that prices may normalize in a few quarters," said the company in the press release.

Magic Handwash reported strong double-digit volume growth. Rising prices of palm oil and its derivatives have increased by high double digits since the start of the year. Management has opted not to fully pass these costs onto consumers, resulting in reduced unit volume growth (UVG) and increased unit price growth (UPG) for the year.

Hair Colour volume grew in double digits. Godrej Expert Rich Crème access packs are outperforming, and the Shampoo Hair Colour line is also experiencing strong double-digit growth. In Deodorants and Sexual Wellness, both categories delivered strong double-digit volume growth.

The Indonesia sales grew by 11 percent in constant currency terms and nine percent in INR terms.
Stella volume grew in strong double-digit led by focused media and marketing
interventions. Hair Colours recorded strong double-digit volume growth, driven
by Shampoo Hair Colour. Household Insecticides delivered healthy mid-teens volume
growth on a 2-year CAGR.

In Africa, USA and Middle East (organic) sales declined by 10 percent in INR terms and was flat in
constant currency terms, year-on-year. EBITDA margin at 14.4 percent, up 590 bps year-on-year led by gross margin expansion, mix improvement, and reduction in controllable costs. Absolute EBITDA grew 33 percent to Rs 93 crore.

On October 24, GCPL's shares on BSE closed 3% lower at Rs 1,253.6 apiece.