Godrej Consumer Products Limited Q2 FY25 Earnings: 7% Growth in Standalone Sales and Volume

On October 24, 2024, Godrej Consumer Products Limited (GCPL), a leading FMCG company in emerging markets, announced its financial results for the quarter ending September 30, 2024. 

In Q2 FY 2025, GCPL’s standalone business showed a solid 7% growth in both sales and volume year-on-year. Indonesia operations saw a volume increase of 7% and an 11% rise in sales in constant currency terms, while in Africa, the USA, and the Middle East, sales remained stable in constant currency but declined by 10% in INR due to currency volatility. Latin America and other regions experienced a robust 36% sales increase in INR terms. Overall, consolidated EBITDA rose by 8%, and net profit (excluding one-time items) increased by 12% year-on-year.

In India, GCPL’s Home Care segment grew by 12%, driven by new products and market share gains across categories. Household insecticides, air fresheners, and fabric care all performed strongly, with products like Goodknight Agarbatti and Aer O establishing leadership positions. The Personal Care segment saw a modest 3% growth, though rising palm oil prices impacted margins, with the company choosing to absorb some of these costs instead of passing them to consumers. Hair colour products and deodorants saw double-digit volume growth, and the Sexual Wellness category continued to gain market share.

In Indonesia, sales grew by 11% in constant currency terms (9% in INR), with a 7% volume rise. Stella and hair colour products performed well, benefiting from focused marketing efforts. In the Africa, USA, and Middle East region, organic sales remained flat in constant currency terms, though they declined in INR. Nonetheless, EBITDA margin in these markets improved to 14.4%, up by 590 basis points, driven by a stronger sales mix, better gross margins, and cost controls.

Commenting on the business performance of Q2 FY 2025, Sudhir Sitapati, Managing Director and CEO of GCPL said, “GCPL has had a steady quarter given the headwinds of oil costs and tough consumer demand in India. Our Standalone business grew by 7% in both volume and value and flat reported EBITDA. Our standalone EBITDA margin at 24.3% is at the lower end of our targeted band and is caused entirely by high inflation on palm oil. The import duty on oil further exacerbated the already high prices. We think this is a short-term hit, and we will recover the margins through judicious price increases and stabilising of costs.”

About Godrej Consumer Products

Godrej Consumer Products, part of the Godrej Group, has a legacy of over 125 years and remains dedicated to delivering health and beauty solutions to consumers in emerging markets. Founded on the principles of trust and integrity, GCPL is continuously expanding with ambitious goals and a firm commitment to quality.

On October 25, 2024, Godrej Consumer Products Limited’s share price opened at ₹1,288.00, touching the day’s high at ₹1,328.85, as of 10:11 AM on the NSE.

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