Godrej Consumer Products (GODREJCP) Q2 2025 earnings summary

Executive summary

• Achieved 7% volume and value growth in India, with flat EBITDA due to palm oil inflation; consolidated net sales grew 2% year-over-year, with organic growth at 5% and constant currency growth at 10%.

• EBITDA grew 8% year-over-year, with consolidated EBITDA margin expanding by 110 bps to 20.8%; standalone EBITDA margin at 24.3%.

• Net profit (without exceptionals and one-offs) increased to ₹497 crore from ₹443 crore year-over-year, but Q2 FY25 net profit after tax declined to ₹392.54 crore.

• High single-digit volume growth sustained despite pressure in soaps, with strong performance in air care, laundry, incense sticks, and sexual wellness.

• The Board declared an interim dividend of ₹5 per share on October 24, 2024.

Financial highlights

• Standalone underlying volume growth (UVG) at 7% year-over-year; Indonesia UVG at 7%.

• Standalone net sales up 7% year-over-year; consolidated net sales up 2%.

• Standalone EBITDA up 14% year-over-year; consolidated EBITDA up 8%.

• Operating margin for H1 FY25 was 21.3%, compared to 19.9% in H1 FY24; net profit margin for H1 FY25 was 13.5%.

• Africa, USA & Middle East delivered 33% EBITDA growth year-over-year, with margin expansion to 14.4%.

Outlook and guidance

• Margins and volume growth expected to remain range-bound for the next couple of quarters due to palm oil volatility; margin recovery anticipated through price increases and cost stabilization.

• Margin pressure in Personal Wash expected to persist due to high palm oil prices, with normalization anticipated in a few quarters.

• The company is undergoing a strategy refresh, including restructuring actions and reorganization across the group.

• International margin improvement to continue, especially in Africa and Indonesia.

• Future projections for Africa have been revised based on changes in business model and external market conditions.