Godfrey Phillips India (500163) Q2 24/25 earnings summary

Executive summary

• Consolidated gross sales value for H1 FY25 reached Rs 6,668 crore, up 23% year-over-year; net profit before exceptional items was Rs 522 crore, up 14% year-over-year.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, with limited review by auditors and no material misstatements found.

• Robust domestic cigarette volume growth and strong unmanufactured tobacco exports supported topline performance.

• Announced introduction of an Employee Share Purchase Scheme (ESPS 2024), subject to shareholder approval.

• Initiated closure of the Retail Business Division (24Seven), with related exceptional loss recognized.

Financial highlights

• Gross profit for H1 FY25 was Rs 1,122 crore with a margin of 16.8%; EBITDA stood at Rs 537 crore, up 12.8% year-over-year.

• Standalone revenue from operations for Q2 FY25 was ₹164,885 lakhs, up from ₹137,574 lakhs in Q2 FY24.

• Consolidated net profit for Q2 FY25 was ₹24,831 lakhs, up from ₹20,206 lakhs in Q2 FY24; H1 FY25 net profit was ₹47,686 lakhs.

• Domestic gross sales value from tobacco was Rs 5,676 crore, contributing 98% to total gross sales.

• International gross sales value was Rs 831 crore; retail business gross sales value was Rs 127 crore.

Outlook and guidance

• Plans underway to enter new markets and launch new offerings, with a focus on sustaining growth momentum.

• Strategic priorities include strengthening the core business, expanding international operations, and leveraging distribution partnerships.

• Management reaffirmed the reasonableness of exceptional loss estimates related to the retail business exit.