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Mint
07-05-2025
- Business
- Mint
Godrej Consumer Products bullish on demand revival amid easing inflation, tax cuts
New Delhi: Godrej Consumer Products Ltd (GCPL) is betting on easing food inflation, tax cuts, and upcoming pay commission hikes to revive consumer demand over the next 12 to 18 months, CEO Sudhir Sitapati said on Wednesday. Despite lingering headwinds in its core soaps business due to a surge in palm oil prices, the company expects demand to pick up as inflation stabilizes and the impact of government welfare schemes kicks in. For the March quarter, GCPL reported a 6% rise in consolidated volumes and a 6.2% increase in revenue to ₹ 3,597.95 crore. But the company's broader strategy hinges on a pivot to emerging categories like pet care, liquid detergents, and deodorants, where it sees higher growth potential even as its soaps segment remains under pressure. Sitapati expressed confidence in the outlook for FMCG demand, citing factors like reduced food inflation and the government's income tax cuts and welfare schemes. 'We are bullish about consumer demand over the next 12 months for a variety of reasons. The El Nino effect basically took up food prices in India last year. Food price inflation has an immediate impact on FMCG consumption. Now that El Nino has reversed, food price inflation has come down in the January to March period,' he said. 'We should see some kind of demand coming back,' he added. GCPL's performance in the March quarter reflects this cautious optimism. Its consolidated revenue from operations grew 6.2% to ₹ 3,597.95 crore, with a profit of ₹ 411.90 crore, compared to a ₹ 1,893.21 crore loss a year ago. For FY24, the company saw a 2% rise in revenue from operations, totaling ₹ 14,364.29 crore. However, the company acknowledged the persistent challenges posed by inflationary pressures, particularly the sharp rise in palm oil prices, which have affected its Ebitda margins. Sitapati referred to the inflationary spike as a "short-term blip" and defended the company's decision to limit price hikes, passing on only 15–16% of the palm oil price increase to consumers rather than shocking the market with higher prices. Looking ahead, GCPL is shifting focus toward high-growth, under-penetrated categories, even as the soaps business continues to feel the impact of rising input costs. The company sees significant growth opportunities in body wash, liquid detergents, deodorants, air fresheners, pet care, and sexual wellness. In 2023, GCPL acquired the fast-moving consumer goods business of Raymond Consumer Care Ltd (RCCL), adding brands like Park Avenue deodorants and KamaSutra sexual wellness products to its portfolio. In April 2024, the company launched its pet care brand, 'Godrej Ninja,' in Tamil Nadu, leveraging the group's marketing and manufacturing strengths. Additionally, GCPL made a strong move in liquid detergents with the launch of Fab Liquid, priced at ₹ 99, which achieved an annualized revenue run rate of ₹ 250 crore within 12 months. The company is also introducing more affordable products in its deodorant range, including a ₹ 99 antiperspirant, Block, and a reduced-price KamaSutra deodorant. Another segment poised for growth is household insecticides. GCPL's brands, Goodknight and Hit, saw double-digit growth in the March quarter. The company is also expanding in the category with innovations like a patented molecule (RMF) in its electric and incense formats, aiming to disrupt the market for illegal incense sticks and drive product and consumer awareness. GCPL anticipates mid-to-high single-digit volume growth in FY26, with high-single-digit revenue growth and double-digit Ebitda growth for FY25. The company expects a recovery in profits once palm oil prices stabilize, which should help support margin expansion in the coming quarters. Sitapati remains optimistic that GCPL's focus on the "categories of tomorrow" will help the company weather short-term challenges and position it for long-term success.
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Business Standard
06-05-2025
- Business
- Business Standard
GCPL reports ₹412 crore profit in Q4 on strong domestic volume growth
FMCG major Godrej Consumer Products Ltd on Tuesday reported a consolidated net profit of Rs 411.9 crore for the fourth quarter ended March 2025, helped by a volume growth in the domestic market. It had incurred a loss of Rs 1,893.21 crore in the January-March period a year ago, due to impairment of loss towards its Africa (including Strength Of Nature) business, according to a regulatory filing from Godrej Consumer Products Ltd (GCPL). Total revenue from operations was at Rs 3,597.95 crore during the quarter under review. It was Rs 3,385.61 crore in the corresponding period last fiscal. In "Q4 FY 2025 consolidated organic sales grew by 7 per cent in INR terms year-on-year on the back of underlying volume growth of 6 per cent," said GCPL in its earning statement. Total expenses in the quarter were at Rs 3,000.84 crore. GCPL Managing Director and CEO Sudhir Sitapati said:" We delivered a sequentially improving performance in Q4 FY 2025, despite market conditions remaining the same. Our consolidated organic volumes for Q4FY25 grew by 6 per cent, led by the India business growing volumes at 4 per cent and Indonesia growing volumes at 5 per cent." Revenue from the India market, where it operates with brands such as Good Knight, Cinthol and HIT, was Rs 2,184.92 crore. On a standalone business, which mainly consists of domestic business, GCPL's "underlying volume grew by 4 per cent, sales grew by 8 per cent year-on-year," it said. According to Sitapati, the "demand conditions in India have continued to be impacted by headwinds in urban consumption. Surge in palm oil prices by more than 50 per cent is negatively impacting our EBITDA margin." However, buoyed by a good season, GCPL's Household Insecticides business grew volumes in strong double digit. "The volume growth on the non-soaps' portfolio was high single digit with soaps volume growth impacted by volume-price rebalancing," he said. Revenue from GCPL's second biggest market Indonesia was at Rs 504.29 crore, up 1.2 per cent in the March quarter. According to GCPL, Indonesia underlying volume grew by 5 per cent, though sales grew by 1 per cent in INR terms and 1 per cent in constant currency terms, year-on-year. GCPL's revenue from Africa (including Strength of Nature) market was up 16.27 per cent to Rs 690.34 crore in the March quarter. "Africa, USA, and Middle East organic sales grew 12 per cent in constant currency terms and 23 per cent in INR terms, year-on-year," it said. However, GCPL's revenue from other markets was down 11.3 per cent to Rs 257.23 crore in Q4/FY25. "Latin America and Others sales grew in constant currency terms, by 2 per cent, but declined by 11 per cent in INR terms, year-on-year," it said. In the financial year ended March 31, 2025, GCPL's net profit was at Rs 1,852.30 crore. Total consolidated revenue from operations was at Rs 14,364.29 crore, up 1.9 per cent. In FY25 "Consolidated organic underlying volume grew at 4 per cent, sales grew by 4 per cent in INR terms impacted by devaluation, constant currency growth of 8 per cent year-on-year," it said. Meanwhile, in a separate filing, GCPL said its board in a meeting held on Tuesday declared an interim dividend of 500 per cent, which is Rs 5/- per share of face value of Re 1 each for financial year 2025-26. Shares of GCPL on Tuesday settled at Rs 1,250.90 apiece on BSE, down 0.9 per cent from the previous close.
Economic Times
06-05-2025
- Business
- Economic Times
Godrej Consumer Products Q4 Results: Co swings to profit at Rs 412 crore, revenue Rs 3,598 cr
FMCG major Godrej Consumer Products Ltd on Tuesday reported a consolidated net profit of Rs 411.9 crore for the fourth quarter ended March 2025, helped by a volume growth in the domestic market. It had incurred a loss of Rs 1,893.21 crore in the January-March period a year ago, due to impairment of loss towards its Africa (including Strength Of Nature) business, according to a regulatory filing from Godrej Consumer Products Ltd (GCPL). ADVERTISEMENT Total revenue from operations was at Rs 3,597.95 crore during the quarter under review. It was Rs 3,385.61 crore in the corresponding period last fiscal. In "Q4 FY 2025 consolidated organic sales grew by 7 per cent in INR terms year-on-year on the back of underlying volume growth of 6 per cent," said GCPL in its earning statement. Total expenses in the quarter were at Rs 3,000.84 crore. GCPL Managing Director and CEO Sudhir Sitapati said:" We delivered a sequentially improving performance in Q4 FY 2025, despite market conditions remaining the same. Our consolidated organic volumes for Q4FY25 grew by 6 per cent, led by the India business growing volumes at 4 per cent and Indonesia growing volumes at 5 per cent." Revenue from the India market, where it operates with brands such as Good Knight, Cinthol and HIT, was Rs 2,184.92 crore. ADVERTISEMENT On a standalone business, which mainly consists of domestic business, GCPL's "underlying volume grew by 4 per cent, sales grew by 8 per cent year-on-year," it said. According to Sitapati, the "demand conditions in India have continued to be impacted by headwinds in urban consumption. Surge in palm oil prices by more than 50 per cent is negatively impacting our EBITDA margin." ADVERTISEMENT However, buoyed by a good season, GCPL's Household Insecticides business grew volumes in strong double digit. "The volume growth on the non-soaps' portfolio was high single digit with soaps volume growth impacted by volume-price rebalancing," he said. ADVERTISEMENT Revenue from GCPL's second biggest market Indonesia was at Rs 504.29 crore, up 1.2 per cent in the March quarter. According to GCPL, Indonesia underlying volume grew by 5 per cent, though sales grew by 1 per cent in INR terms and 1 per cent in constant currency terms, year-on-year. ADVERTISEMENT GCPL's revenue from Africa (including Strength of Nature) market was up 16.27 per cent to Rs 690.34 crore in the March quarter. "Africa, USA, and Middle East organic sales grew 12 per cent in constant currency terms and 23 per cent in INR terms, year-on-year," it said. However, GCPL's revenue from other markets was down 11.3 per cent to Rs 257.23 crore in Q4/FY25. "Latin America and Others sales grew in constant currency terms, by 2 per cent, but declined by 11 per cent in INR terms, year-on-year," it said. In the financial year ended March 31, 2025, GCPL's net profit was at Rs 1,852.30 crore. Total consolidated revenue from operations was at Rs 14,364.29 crore, up 1.9 per cent. In FY25 "Consolidated organic underlying volume grew at 4 per cent, sales grew by 4 per cent in INR terms impacted by devaluation, constant currency growth of 8 per cent year-on-year," it said. Meanwhile, in a separate filing, GCPL said its board in a meeting held on Tuesday declared an interim dividend of 500 per cent, which is Rs 5/- per share of face value of Re 1 each for financial year 2025-26. Shares of GCPL on Tuesday settled at Rs 1,250.90 apiece on BSE, down 0.9 per cent from the previous close. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
06-05-2025
- Business
- Time of India
Godrej Consumer Products Q4 Results: Co swings to profit at Rs 412 crore, revenue Rs 3,598 cr
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel FMCG major Godrej Consumer Products Ltd on Tuesday reported a consolidated net profit of Rs 411.9 crore for the fourth quarter ended March 2025, helped by a volume growth in the domestic market. It had incurred a loss of Rs 1,893.21 crore in the January-March period a year ago, due to impairment of loss towards its Africa (including Strength Of Nature) business , according to a regulatory filing from Godrej Consumer Products Ltd (GCPL).Total revenue from operations was at Rs 3,597.95 crore during the quarter under review. It was Rs 3,385.61 crore in the corresponding period last "Q4 FY 2025 consolidated organic sales grew by 7 per cent in INR terms year-on-year on the back of underlying volume growth of 6 per cent," said GCPL in its earning expenses in the quarter were at Rs 3,000.84 Managing Director and CEO Sudhir Sitapati said:" We delivered a sequentially improving performance in Q4 FY 2025, despite market conditions remaining the same. Our consolidated organic volumes for Q4FY25 grew by 6 per cent, led by the India business growing volumes at 4 per cent and Indonesia growing volumes at 5 per cent."Revenue from the India market, where it operates with brands such as Good Knight, Cinthol and HIT, was Rs 2,184.92 a standalone business, which mainly consists of domestic business, GCPL's "underlying volume grew by 4 per cent, sales grew by 8 per cent year-on-year," it to Sitapati, the "demand conditions in India have continued to be impacted by headwinds in urban consumption. Surge in palm oil prices by more than 50 per cent is negatively impacting our EBITDA margin."However, buoyed by a good season, GCPL's Household Insecticides business grew volumes in strong double digit."The volume growth on the non-soaps' portfolio was high single digit with soaps volume growth impacted by volume-price rebalancing," he from GCPL's second biggest market Indonesia was at Rs 504.29 crore, up 1.2 per cent in the March to GCPL, Indonesia underlying volume grew by 5 per cent, though sales grew by 1 per cent in INR terms and 1 per cent in constant currency terms, revenue from Africa (including Strength of Nature) market was up 16.27 per cent to Rs 690.34 crore in the March quarter."Africa, USA, and Middle East organic sales grew 12 per cent in constant currency terms and 23 per cent in INR terms, year-on-year," it GCPL's revenue from other markets was down 11.3 per cent to Rs 257.23 crore in Q4/FY25."Latin America and Others sales grew in constant currency terms, by 2 per cent, but declined by 11 per cent in INR terms, year-on-year," it the financial year ended March 31, 2025, GCPL's net profit was at Rs 1,852.30 crore. Total consolidated revenue from operations was at Rs 14,364.29 crore, up 1.9 per FY25 "Consolidated organic underlying volume grew at 4 per cent, sales grew by 4 per cent in INR terms impacted by devaluation, constant currency growth of 8 per cent year-on-year," it in a separate filing, GCPL said its board in a meeting held on Tuesday declared an interim dividend of 500 per cent, which is Rs 5/- per share of face value of Re 1 each for financial year 2025-26. Shares of GCPL on Tuesday settled at Rs 1,250.90 apiece on BSE, down 0.9 per cent from the previous close.
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.
