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Business Standard
08-05-2025
- Business
- Business Standard
Rural demand for FMCG grows at a slower pace in January-March: NielsenIQ
Rural demand drives 11 per cent FMCG growth in Q1 2025 despite slowing pace as consumers favour smaller packs and E-commerce gains traction in urban metros Sharleen Dsouza Mumbai Rural demand for fast-moving consumer goods (FMCG) started to grow at a slower pace in the January–March quarter but still remained four times faster than growth in demand in urban areas, according to NielsenIQ (formerly known as Nielsen). Demand from rural areas stood at 8.4 per cent in Q1 of 2025 (calendar year), which was lower than 9.2 per cent in October–December of 2024. Urban demand, on the other hand, saw its growth further moderate in the quarter to 2.6 per cent, compared to 4.2 per cent in the October–December quarter. 'A higher unit growth than volume growth indicates a preference shift towards smaller packs in consumers,' NielsenIQ said. FMCG majors have also continued to highlight the slowdown in urban demand for FMCG items. In a recent interview with Business Standard, Sudhir Sitapati, managing director and chief executive officer, said that he hopes urban demand will recover in the next 12 to 18 months. Companies have also observed consumers opting for smaller packs more than larger ones. "The FMCG sector is showing mixed signals—while volume growth is slowing across categories, non-food segments are still outpacing food. Inflation is easing overall, but high edible oil prices are keeping staples expensive,' said Roosevelt Dsouza, head of customer success – FMCG, NielsenIQ India. He added, 'Rural markets continue to drive growth, whereas urban metros continue to see a shift toward E-commerce with higher shopper engagement. With a favourable monsoon forecast and revised tax slabs, consumption is likely to pick up in the upcoming quarters. Interestingly, small players are gaining more ground due to a low base and changing market dynamics, though their long-term momentum remains to be seen." In the quarter, traditional trade, which typically refers to sales from mom-and-pop stores, increased to 6.2 per cent from 5.0 per cent in the corresponding quarter last year. Modern trade saw a decline of 3.3 per cent in the quarter, compared to a decline of 1.1 per cent in the October–December quarter. Food consumption growth slowed to 4.9 per cent in the quarter ended March from 6 per cent in the quarter ended December, due to decreased volumes in staple categories like edible oils and palm oil, which saw price increases. Home and personal care categories saw a consumption growth of 5.7 per cent in the quarter, as demand from rural areas was higher. 'E-commerce continues to strengthen its presence significantly in eight metros, impacting the share of offline channels—both modern trade and traditional trade. This growth is largely volume-driven, supported by increasing online shopper penetration, more purchase occasions, and increasing basket sizes (more units purchased per shopper),' the report noted.
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.
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.
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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)
