Latest news with #GodrejConsumer
Business Standard
07-05-2025
- Business
- Business Standard
Godrej Consumer registers PAT of Rs 432 crore in Q4; volume growth at 6%
Godrej Consumer Products has reported 65% increase in consolidated net profit to Rs 432.10 crore on a 6.3% rise in net sales to Rs 3,577.81 crore in Q4 FY25 as compared with Q4 FY24. The company registered a volume growth of 6% in the fourth quarter. Godrej Consumers standalone business recorded an underlying volume growth of 4% and its sales grew by 8% year-on-year. Indonesia business underlying volume grew by 5% and sales grew by 1% in INR terms and 1% in constant currency terms, on a year-on-year basis. The Africa, USA, and Middle East business recorded 12% growth in organic sales in constant currency terms and 23% in INR terms, on a year-on-year basis. Latin America and Others sales grew in constant currency terms, by 2%, but declined by 11% in INR terms, on a year-on-year basis. Total operating costs declined by 42.7% year-over-year (YoY) to Rs 2,870.09 crore during the period under review. This was due to lower employee expenses (down 18.9% YoY) and lower other expenses (down 79.6% YoY). The company has recorded a pre-tax profit of Rs 639.41 crore in Q4 FY25 as against a pre-tax loss of Rs 1,684.47 crore posted in the same period last year. For FY25, Godrej Consumer has recorded a net profit of Rs 1,896.10 crore (up 63.8% YoY) and net sales of Rs 14,284.81 crore (up 2.2% YoY). Sudhir Sitapati, managing director, and CEO, GCPL, said: We delivered a sequentially improving performance in Q4 FY 2025, despite market conditions remaining the same. Our Consolidated organic volumes for Q4 FY25 grew by 6%, led by the India business growing volumes at 4% and Indonesia growing volumes at 5%. This led to full-year organic volume growth delivery at 4% for our consolidated business, 5% for India and 6% for Indonesia. Our Consolidated organic revenue growth for Q4 and FY 2025 stood at 7% and 4%, respectively. 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. However, buoyed by a good season, we had a blockbuster performance in Household Insecticides which grew volumes 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. 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% EBITDA margin resulting in the fifth consecutive quarter of profit and margin expansion. We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development." Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colorants, toiletries and liquid detergents. The scrip shed 0.32% to currently trade at Rs 1246.95 on the BSE.
Reuters
10-03-2025
- Business
- Reuters
India's Godrej Consumer mulls more gradual price hikes for soaps
CHENGALPATTU, India March 10 (Reuters) - India's Godrej Consumer Products ( opens new tab will keep raising prices of its soaps gradually to protect margins amid rising palm oil prices, the consumer goods maker's top boss said on Monday. Palm oil prices have surged in recent months due to floods in top producers Indonesia and Malaysia, forcing consumer goods makers, including Dove soapmaker Hindustan Unilever ( opens new tab and Cinthol owner Godrej Consumer, to raise prices. "We have not recovered the full extent of the costs yet," Godrej Consumer CEO Sudhir Sitapati told Reuters in the southern Indian state of Tamil Nadu. It would take 2-to-3 quarters to widen margins, but the company will not push up prices suddenly, the CEO said. Sitapati does not expect the price hikes to have an impact on sales as palm oil-based products, including soap, tend "not to be discretionary" goods that consumers can forgo. Soaps make up about a fifth of Godrej Consumer's revenue. Middle-class Indians, particularly city dwellers, have been cutting spending on everything from cookies to fast food due to elevated inflation and slowing economic growth. The impact of palm oil prices on margins of larger rival Hindustan Unilever, which has been reformulating its soaps to cut the use of palm oil, is lower, analysts have said. Godrej Consumer's CEO ruled out reformulating soaps to reduce the use of palm oil. The company's gross margin narrowed 175 basis points during the October-to-December period from a year earlier, the first shrinkage in two years, as prices of palm oil surged.
