Conference Call with Godrej Consumer Products Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Personal Products company Godrej Consumer Products announced Q2FY25 results Segment-wise results are as under: Standalone business sales and volume grew by 7% YoY. Indonesia volumes grew by 7% and sales grew by 11% in constant currency terms, YoY. Africa, USA and Middle East (organic) sales declined by 10% in Rs terms and was flat in constant currency terms, YoY. Latin America and others sales grew by 36% in INR terms, YoY. Q2FY25 consolidated EBITDA grew by 8% YoY. Q2FY25 consolidated net profit grew by 12% YoY (without exceptionals and oneoff items). Sudhir Sitapati, Managing Director and CEO, 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 already high prices were further exacerbated by the import duty on oil. We think this is a short-term hit and we will recover the margins through judicious price increase and stabilising of costs. Indonesia continued its steady performance with 7% volume, 9% revenue and 17% EBITDA growth. GAUM continued to have a weak topline quarter but an exceptional bottom-line quarter. While organic volumes declined by 8% and value declined by 10%, reported EBITDA grew by 33%. Our margins are now 14.4% While the overall quarter was 5% organic UVG, 5% organic USG and 8% reported EBITDA, the topline performance in Asia and the bottom-line performance in our international businesses have been encouraging. High-single digit volume growth during a period of low soap volume growth is testimony to the increasing strength of the rest of our portfolio. Particularly noteworthy are the continued growth of Air Care and the rapid scale up of Laundry, Incense Sticks and Sexual Wellness. Our relaunch of Household Insecticides with the RNF molecule is showing clear green shoots in incense sticks and coils which were launched a few quarters earlier. Our focus is on continuing and improving our volume growth story while the palm oil price volatility plays out over the next few quarters. Result PDF