Godrej Consumer Products (GODREJCP) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw underlying strength with India and Indonesia driving volume and EBITDA growth, while GAUM and LATAM focused on profitability through simplification and restructuring.

• India achieved 8% organic volume growth and Indonesia 7%, with consolidated EBITDA up 13% year-over-year.

• Net profit (reported) rose 41% year-over-year, with net sales up 9% in constant currency terms, though reported revenue declined 3.4% to ₹3,331.58 crore due to currency volatility and restructuring.

• New business initiatives included the launch of Godrej Pet Care and innovative Home Care products like Goodknight Flash Liquid Vaporiser and HIT Spray Matic.

• Exceptional items included ₹20.30 crore in restructuring costs as part of a group-wide strategy refresh.

Financial highlights

• Consolidated revenue declined 3% (reported) to ₹3,331.58 crore, but grew 9% in constant currency; EBITDA up 13%, and net profit (adjusted) was ₹470 crore.

• EBITDA margin expanded to 21.9% consolidated, with India at 24.7% and Indonesia at 23.3%.

• India EBITDA grew 8% despite palm oil price pressures; Indonesia reported 11% constant currency revenue growth and 32% constant currency EBITDA growth.

• GAUM and LATAM saw revenue declines due to currency volatility and trade destocking, but both delivered strong EBITDA margin improvements.

• Interim dividend of ₹5 per share declared for Q1 FY25.

Outlook and guidance

• Expect positive pricing in India from Q2 onwards, with full-year pricing growth of 2-3% and high single-digit to low double-digit volume growth.

• Indonesia growth to be more broad-based, with both HIT and Stella contributing.

• GAUM volume growth may remain under pressure for 1-2 quarters due to trade destocking, but profitability is expected to remain strong.

• Ongoing restructuring actions and strategy refresh expected to impact future quarters.

• Continued focus on margin expansion and profitable growth in international markets.