Godrej Consumer Products Limited reports strong Q1 FY 2025 results amid new ventures

Godrej Consumer Products Limited (GCPL), a leading FMCG company in emerging markets, has announced robust financial results for the first quarter of fiscal year 2025, which ended on June 30, 2024. The company demonstrated impressive growth across various segments despite challenges in certain regions. GCPL also revealed its entry into the pet care industry, marking a significant expansion into a new and promising market.

Financial Performance Summary: A Strong Start to FY 2025

GCPL’s consolidated EBITDA for Q1 FY 2025 increased by 13% year-on-year, reflecting the company’s solid operational performance. The consolidated net profit also saw a notable rise of 14%, excluding exceptional items and one-offs. In India, the company achieved an 8% growth in organic volume, with reported volume increasing by 10%. Reported sales in India grew by 9% compared to the previous year.

In Indonesia, GCPL reported a 7% increase in volume and an 11% rise in sales in constant currency terms year-on-year. However, the performance in Africa, the USA, and the Middle East faced a 25% decline in INR terms and a 10% decline in constant currency terms due to currency devaluation and market challenges. Conversely, sales in Latin America and SAARC regions grew by 7% in INR terms and surged by 147% in constant currency terms.

GCPL Ventures into Pet Care: A Strategic Expansion

GCPL is expanding its portfolio by entering the pet care industry through its new subsidiary, Godrej Pet Care (GPC). The pet care market in India, valued at approximately ₹5,000 crore, is expected to grow at a strong double-digit rate over the coming decades. GCPL plans to invest ₹500 crore in GPC over the next five years, with Godrej Agrovet Limited (GAVL) as its manufacturing and R&D partner. The company aims to commence pet care operations in the second half of FY 2026.

GCPL’s Managing Director and CEO, Sudhir Sitapati, highlighted the company’s strong performance in key markets and expressed optimism about the new pet care venture. He noted the healthy volume growth in India and Indonesia, despite the decline in other regions. Sitapati emphasized the company’s focus on profitable and sustainable growth, supported by strategic investments and operational improvements.

Performance Across Key Markets

In India, GCPL’s Q1 FY 2025 results showed a 6% increase in organic sales and an 8% rise in EBITDA. The company’s home care segment grew by 8%, with innovations such as the Goodknight Liquid Vaporiser and HIT Spray Matic contributing to its performance. The personal care segment also performed well, with Magic Handwash and other products gaining market share despite a flat performance in hair colours.

In Indonesia, sales grew by 11% in constant currency terms, with a 3% increase in INR terms. GCPL’s focus on market interventions and product launches, such as the Stella Electric Diffuser, supported this growth.

In Africa, the USA, and the Middle East, organic sales declined by 10% in constant currency terms. However, GCPL managed to improve EBITDA margins significantly, reflecting improved profitability despite challenging market conditions.

Looking Ahead

GCPL’s strong financial performance in Q1 FY 2025 underscores its resilience and strategic focus on growth and profitability. The company’s entry into the pet care market and continued investments in key regions highlight its commitment to expanding its portfolio and driving sustainable growth.