Conference Call with Godrej Consumer Products Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Personal Products company Godrej Consumer Products announced Q3FY25 results Q3FY25 consolidated organic sales grew by 6% YoY. Segment wise results are as under: Standalone business sales grew by 4% and volumes were flat YoY. Indonesia volumes grew by 6% and sales grew by 9% in Rs terms, YoY. Africa, USA and Middle East (organic) sales declined by 8% in Rs terms and grew by 1% in constant currency terms, YoY. Latin America and Others sales grew by 165% in Rs terms and 28% in constant currency terms, YoY. Q3FY25 consolidated EBITDA margin at 20.2%. Q3FY25 consolidated net profit declined by 14% YoY (without exceptional items and one-offs) due to temporary headwinds. Sudhir Sitapati, Managing Director and CEO, GCPL, said: Demand conditions in India have witnessed temporary headwinds over the past few months, led by a slowdown in urban consumption. Surge in palm oil prices by more than 40% along with weak seasonality in Household Insecticides has led to a flat underlying volume growth and midsingle digit underlying sales growth for our Standalone business. The surge in palm oil costs is negatively impacting our EBITDA margin. Our reported Standalone EBITDA margin at 22.6% is lower than our normative margin. Our categories of Air Fresheners, Laundry Liquids, etc. have continued to deliver strong double-digit underlying volume growth. In Household Insecticides, Goodknight Agarbatti has outperformed and gained significant market share in the Incense Sticks category. Premium formats in Household Insecticides were impacted due to Urban slowdown and category seasonality, however we have started to gain market share within premium formats, which suggests that the RNF molecule is working amongst consumers. In Indonesia, we continue to consistently deliver healthy performance with 6% volume growth and EBITDA margin expansion. In organic terms, Africa, USA and the Middle East sales grew by 1% in constant currency terms and declined by 8% in Rs terms and delivered ~15% EBITDA margin for the fourth consecutive quarter. This translated into Consolidated organic sales growth of 6%. We remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability. We continue to have a strong balance sheet. 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 through category development. Result PDF