Godrej Consumer Products Ltd reported a 13.52% increase in consolidated net profit to INR 491.31 crore in the September quarter, thanks to volume growth in the domestic market and Indonesia. Last year, they posted a net profit of INR 432.77 crore in the same quarter, according to a Godrej Consumer Products Ltd (GCPL) filing.
Godrej Consumers’ revenue reaches INR 3,647.11 cr
According to ET Retail, GCPL, the FMCG division of Godrej Industries Group, saw its product sales revenue rise by 2.2% to INR 3,647.11 crore in the September quarter. This is up from INR 3,568.36 crore in the same period last year. Their total expenses in this quarter slightly increased to INR 3,039.88 crore.
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Meanwhile, GCPL, which owns brands like Good Knight, Cinthol, and HIT, saw total revenue rise by 2.3% to INR 3,752.32 crore in the September quarter. Domestic market revenue increased by 6.1% to INR 2,300.65 crore, up from INR 2,168.21 crore a year ago.
“GCPL has had a steady quarter given the headwinds of oil costs and tough consumer demand in India. Our standalone business grew by 7 per cent in both volume and value and flat reported EBITDA,” Managing Director and CEO Sudhir Sitapati said.
Godrej EBITDA margin suffers due to palm oil inflation
Additionally, GCPL’s standalone earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin of 24.3% is lower than their target due to high palm oil inflation and import duties. “We think this is a short-term hit and we will recover the margins through judicious price increase and stabilising of costs,” he commented.
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Likewise, GCPL’s revenue from its second-largest market, Indonesia, grew by 8.63% to Rs 513.81 crore from Rs 472.96 crore last year. Sitapati said Indonesia showed “steady performance” with a 7% rise in volume and 17% EBITDA growth. However, revenue from Africa, including Strength of Nature, dropped by 21% to Rs 644.56 crore in the September quarter.
