Godrej Consumer Products Limited (GCPL), a leading emerging markets FMCG company, has reported a robust performance for the first quarter, with double-digit topline growth driven by strong volume performance across countries.

Financial Highlights

• Consolidated sales grew by 10% in INR terms and 11% in constant currency terms year-on-year
• Underlying volume growth of 8% on a consolidated basis
• Standalone business in India saw sales growth of 8% with a 5% underlying volume growth
• Africa, USA, and Middle East organic sales grew 30% in INR terms
• Latin America and Others segment grew sales by 18% in INR terms

Segment Performance

India Business

The India business delivered a revenue growth of 8%, with volume growth at 5%. Excluding soaps, the underlying volume growth was in the teens. Key highlights include:

• Household Insecticides: High single-digit volume growth, with Electrics growing in double digits
• Air Fresheners: Continued strong double-digit growth across formats
• Fabric Care: Strong double-digit volume growth for the sixth consecutive quarter
• Hair Colour: Strong double-digit performance led by Crème and Shampoo Hair Colour

International Business

• Indonesia: Faced challenges due to macro headwinds and competitive pricing pressures, resulting in flat underlying volume growth and a 4% sales decline
• Africa: Continued solid performance with sales growing at 30% and EBITDA growing at 15%
• Latin America: Performed exceptionally well with high single-digit underlying volume growth

Management Commentary

Sudhir Sitapati, Managing Director and CEO of GCPL, commented on the results: "Q1 has been a good quarter for GCPL. In particular, our Standalone, excluding soaps, business has had an excellent performance, delivering an underlying volume growth around teens, led by robust broad-based performance."

He added, "We expect performance to improve sequentially with the second half performance expected to be better than the first half. We are on track to deliver mid-high-single digit UVG for our Standalone business, high-single digit Consolidated INR revenue growth and double-digit Consolidated EBITDA growth for the full year."

Future Outlook

GCPL expects business volume growth in India to increase from mid-single-digits to high-single-digits in the upcoming quarters. The company remains committed to its strategy of driving profitable and sustainable volume growth across its portfolio through category development.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹5.00 per share (500% on face value of ₹1.00 each). The record date for the dividend is set for August 13, with payment to be made on or before September 6.

Godrej Consumer Products continues to focus on bringing the goodness of health and beauty to consumers in emerging markets, while maintaining its commitment to sustainability and responsible growth.

Godrej Consumer Products Limited (GCPL) has announced its financial results for the quarter ended June 30, showcasing robust growth and strategic developments across its business segments.

Financial Highlights

• Consolidated revenue grew by 10% to Rs. 3,662.00 crore
• Underlying volume growth (UVG) of 8% on a consolidated basis
• Standalone business grew by 8% to Rs. 2,307.00 crore with 5% volume growth
• EBITDA declined by 3% on a consolidated basis and 6% on a standalone basis
• Net profit remained flat year-on-year at Rs. 452.45 crore

Segment Performance

India Business

• Home Care segment grew by 16%
• Household Insecticides delivered strong high single-digit UVG
• Air Fresheners continued double-digit growth
• Fabric Care achieved strong double-digit UVG for the sixth consecutive quarter

International Business

• Indonesia faced challenges with flat UVG and 4% sales decline
• Africa, USA, and Middle East showed strong 30% sales growth
• Latin America and Others grew by 18% in INR terms

Dividend Declaration

The Board of Directors has declared an interim dividend of Rs. 5.00 per share (500% on face value). The record date is set for August 13, with payment to be made by September 6.

Management Commentary

Sudhir Sitapati, Managing Director and CEO of GCPL, commented on the performance: "Q1 has been a good quarter for GCPL. Our Standalone business, excluding soaps, delivered an excellent performance with underlying volume growth around teens, led by robust broad-based performance. While our international business faced some headwinds in Indonesia, this was compensated by strong performance in Africa."

Outlook

The company expects performance to improve sequentially, with the second half anticipated to be stronger than the first half. GCPL remains committed to its strategy of driving profitable and sustainable volume growth across its portfolio through category development.

Conclusion

Despite facing some challenges in certain markets, Godrej Consumer Products Limited has demonstrated resilience and growth in key segments. The company's focus on innovation, market expansion, and strategic cost management positions it well for continued growth in the coming quarters.