Latest news with #GAUM
Business Standard
6 days ago
- Business
- Business Standard
Godrej Consumer gains after forecasting double digit revenue growth for Q1
Godrej Consumer Products rallied 6.39% to Rs 1,269 after the company expects the consolidated double-digit revenue growth on the back of high-single digit UVG in Q1 FY26. Home Care business has had a broad-based and strong growth trajectory with overall Home Care business likely to deliver double-digit value growth and UVG. Personal Care business is expected to grow value in low-single digit impacted by soaps. The company said that its standalone business is likely to deliver high-single digit value growth on the back of mid-single digit UVG. Volume growth has been strongly competitive and is sequentially improving. Standalone business excluding soaps (which is seeing a price-volume rebalancing driven by commodity volatility) is expected to deliver a very strong performance this quarter with double-digit UVG. Indonesia business faced a significant increase in competitive pricing action across all major categories. The company said that this will likely result in flattish UVG. GAUM (Godrej Africa, USA, and Middle East) business is likely to deliver strong double-digit value growth and UVG for the second consecutive quarter. Profit growth continues to be healthy. As guided during the companys Investor Meet (May 2025), it expects performance to improve sequentially in FY26. It believes for FY26, on track to deliver mid-high-single digit UVG for standalone business, high-single digit consolidated INR revenue growth and double-digit consolidated EBITDA growth for the full year. The standalone EBITDA margin in Q1FY26 is likely to be below its normative range but is expected to improve. While palm oil prices have started moderating towards the end of June, benefits of this moderation will only be realized in H2FY26. Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colorants, toiletries and liquid detergents. The company reported a consolidated net profit of Rs 411.90 crore in Q4 FY25 compared with net loss of Rs 1,893.21 crore in Q4 FY24. Net sales increased 6.3% YoY to Rs 3,577.81 crore in Q4 FY25.
Economic Times
6 days ago
- Business
- Economic Times
Godrej Consumer shares surge 5% post Q1FY26 business update
Godrej Consumer Products (GCPL) shares rose 5% to Rs 1,253 on Monday after the company released a positive business update for Q1FY26. ADVERTISEMENT The FMCG major said it expects its standalone business to deliver high single-digit value growth, supported by mid-single-digit volume growth (UVG). The performance reflects improving demand trends and operational momentum, particularly in its Home Care and GAUM (Godrej Africa, USA, and Middle East) businesses. The Home Care segment has maintained a strong, broad-based growth trajectory, with the company projecting double-digit value and volume growth. While the Personal Care segment saw subdued growth due to pricing pressures in the soaps category, performance excluding soaps remained strong, also registering double-digit UVG. The company reiterated its full-year outlook from the May 2025 Investor Meet, stating it remains on track to achieve: Mid to high single-digit UVG for the Standalone business, High single-digit consolidated INR revenue growth, and Double-digit consolidated EBITDA growth for FY26. However, GCPL flagged margin pressure in Q1FY26, with Standalone EBITDA margins expected to be below the normative range, though sequential improvement is anticipated in the coming quarters. The company noted that the benefits of moderating palm oil prices will likely be visible in the second half of the fiscal international markets, the GAUM business is poised to deliver double-digit value and volume growth for the second consecutive quarter, while the Indonesia business continues to face challenges from aggressive pricing competition, which may result in flattish volume growth. ADVERTISEMENT At the consolidated level, GCPL expects double-digit INR revenue growth, driven by high single-digit volume growth, signaling broad-based strength across key markets and categories. According to a research report by Nomura, Godrej Consumer Products' Q1FY26 business update better than expectations, with double-digit consolidated revenue growth and mid-single-digit volume growth in India. Nomura has reiterated its 'Buy' rating on the stock with a target price of Rs 1,485, noting that GCPL is currently trading at 46.9x its FY27F earnings per share. The brokerage continues to value GCPL on a Sum-of-the-Parts (SoTP) basis for June FY27, assigning an EV/EBITDA multiple of 40x for the India business and 36x for international operations. The target price implies a forward P/E of 56x, which remains unchanged. (You can now subscribe to our ETMarkets WhatsApp channel)
