Godrej Consumer Products reports 10% rise in 1Q FY 2024 sales

Leading emerging markets FMCG entity, Godrej Consumer Products Limited (GCPL), discloses its financial outcomes for the quarter ending June 30, 2023. With a 10% surge in consolidated sales, the key growth indicators remain optimistic.

Financial Highlights for 1Q FY 2024

Godrej Consumer Products’ consolidated sales observed a 10% volume growth, along with a 15% constant currency growth year-on-year. Within this framework, the India business expanded by 9%, Indonesia witnessed a 20% surge, while Africa, the USA, and the Middle East saw a 9% increase in sales. Notably, Latin America and SAARC reported a growth of 18% in INR terms. As the quarter progressed, Godrej Consumer Products registered a 28% year-on-year elevation in its consolidated EBITDA and a 19% spike in its consolidated net profit.

CEO’s Commentary on the Financials

Sudhir Sitapati, the Managing Director and CEO at Godrej Consumer Products, expressed, “We started the year on a positive note… Our EBITDA Margin, too, improved by 270 bps year-on-year… We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio.”

India’s Business Insights

Diving into India-specific data, the 1Q FY 2024 sales amounted to INR 1,971 crore, showing a 9% growth. The EBITDA and net profit, excluding exceptions and one-offs, stood at INR 492 crore and INR 353 crore, respectively. Within the categories, Home Care saw a 14% growth, driven by household insecticides and air fresheners. On the other hand, the Personal Care segment experienced a 2% growth, with positive traction in personal wash and hair color sections.

Business Review: Indonesia

Indonesia reported a 15% sales growth in constant currency terms. A notable increase in EBITDA margins by 420 bps year-on-year was observed, largely attributed to reduced trade promotions and greater scale leverage.

Performance Metrics: Africa, USA, and the Middle East

The combined sales growth for the regions for Godrej Consumer Products was 16% in constant currency terms. The FMCG category showcased robust double-digit sales growth, with EBITDA margins expanding by 350 bps year-on-year.