Conference Call with Godrej Consumer Products Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.
Personal Products company Godrej Consumer Products announced Q1FY26 results Q1FY26 consolidated sales grew by 10% in Rs and 11% in constant currency terms YoY on the back of underlying volume growth of 8%, Standalone business underlying volume grew by 5%, sales grew by 8% YoY. Indonesia underlying volume growth remained flat, sales de-grew by 4% in constant currency and Rs terms, YoY. Africa, USA, and Middle East organic sales grew 30% in Rs and 29% in constant currency terms, YoY. Latin America and Others grew sales by 18% in Rs and 29% in constant currency terms, YoY. Q1FY26 consolidated EBITDA margins stood at 19.2%. Q1FY26 consolidated net profit remained flat YoY (without exceptional items and one-offs) due to temporary headwinds. Sudhir Sitapati, Managing Director, & CEO, GCPL, said: "Q1FY26 has been a good quarter for GCPL. In particular, our Standalone, excluding soaps, business has had an excellent performance, delivering an underlying volume growth around teens, led by robust broad-based performance. Our international business has been impacted due to macro headwinds and competitive pricing pressures in Indonesia which was compensated by strong performance in Africa. On a consolidated basis, our Revenues grew 10% in Rs terms, with 8% underlying volume growth and -3% on EBITDA. India has had a good quarter, delivering revenue growth of 8%. Our volume growth was 5% and EBITDA growth was -6%. However, excluding soaps, we grew underlying volumes by teens with soaps volume growth impacted by volume-price rebalancing. We had a robust performance in Household Insecticides which grew volumes in high single digit, led by Electrics growing in double digits. We have gained market share in Electrics on the back of product relaunches and are very happy with the outcome of our actions. Air Fresheners, Laundry Liquids, etc. have continued to deliver strong underlying volume growth. Furthermore, as guided during our annual Investor Meet 2025, we are on track to deliver ~200 bps of savings in Media investments, without compromising on our reach. These savings are a result of better planning, automation and negotiations with a new agency. Our Indonesia business has been impacted by macro headwinds and competitive pricing pressures. However, we expect this to be transitory in nature with the situation likely to improve in a few months. Our Africa business continued its solid performance with sales growing at 30% and EBITDA growing at 15%. We successfully launched Aer Pocket across all markets in Africa and are seeing an incredibly positive consumer response. Latin America continues to do extremely well with high single-digit underlying volume growth and EBITDA margins now in double digit. As guided during our Investor Meet, we expect performance to improve sequentially in FY26 with the second half performance expected to be better than the first half. Standalone EBITDA margin in H1FY26 is likely to be below our normative range but is expected to improve in the second half. While palm oil prices started moderating towards the end of June, benefits of this moderation will only be realized in H2FY26. We believe that we are on track to deliver mid-high-single digit UVG for our Standalone business, high-single digit Consolidated Rs revenue growth and double-digit Consolidated EBITDA growth for the full 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 through category development. We remain committed to our purpose of bringing the goodness of health and beauty to consumers in emerging markets." Result PDF
