Godrej Consumer Products (GODREJCP) Q3 24/25 earnings summary

Executive summary

• Consolidated organic revenue grew 6% in rupee terms, with flat volumes and a 10% decline in reported EBITDA year-over-year; Q3 FY2025 saw subdued performance due to temporary headwinds, with net profit declining year-over-year.

• International businesses, especially Indonesia and Latin America, delivered strong growth and margin expansion, offsetting domestic weakness.

• India business faced a tough quarter: flat volume growth, 4% revenue growth, and a 21% decline in EBITDA year-over-year.

• GCPL was recognized among the top 3 global FMCG companies in the Dow Jones Sustainability Index 2024.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved, with statutory auditors issuing an unmodified review report.

Financial highlights

• Consolidated revenue from operations for Q3 FY25 was ₹3,768.43 crore, up from ₹3,666.33 crore in the previous quarter and ₹3,659.64 crore in Q3 FY24.

• Consolidated EBITDA margin held at about 20% despite margin pressures; net profit after tax for Q3 FY25 was ₹498.31 crore.

• Net profit (reported) declined 21% year-over-year; net profit excluding exceptionals and one-offs declined 14%.

• Standalone net sales grew 4% year-over-year; international sales growth led by Indonesia (9% in INR, 8% in constant currency); Latin America and Others reported 165% sales growth year-over-year.

• Basic EPS for Q3 FY25 stood at ₹4.87, compared to ₹4.80 in Q2 FY25 and ₹5.68 in Q3 FY24.

Outlook and guidance

• Expect sequential improvement in volume and value growth in Q4 FY25 and Q1 FY26, with margin normalization by H1 FY26.

• Further price increases in soaps anticipated to restore margins to the 24–26% range over the next two to three quarters.

• Ongoing restructuring and strategy refresh across the group, with related costs recognized as exceptional items.

• Africa expected to return to positive revenue growth from Q4 FY25.

• Margin pressure in Personal Wash expected to persist due to palm derivative inflation.