Personal Products firm Godrej Consumer Products Announced Q1FY23 Result :
- 1Q FY 2023 results – GCPL clocks sales of INR 3,094 crore in 1QFY2023 with growth of 8%
- 1Q FY 2023 consolidated sales grew by 8% year-on-year; 3-year CAGR 10%
- India business sales grew by 12% year-on-year, 3-year CAGR 12%
- Indonesia sales declined by 9% in INR and 12% in constant currency terms, year-on-year; 3-year CAGR -2% in constant currency
- Africa, USA and Middle East sales grew by 12% in INR and constant currency terms, year-onyear; 3-year CAGR 11% in constant currency
- Latin America & SAARC sales declined by 5% in INR and grew 15% in constant currency terms, year-on-year; 3-year CAGR 28% in constant currency
- 1Q FY 2023 consolidated EBITDA declined by 13% year-on-year (without one-offs)
- 1Q FY 2023 consolidated net profit declined by 16% year-on-year (without exceptional items and one-offs)
Commenting on the business performance of 1Q FY 2023, Sudhir Sitapati, Managing Director and CEO, GCPL, said: We delivered a steady performance in 1Q FY 2023. Overall sales grew by 8% with 3-year CAGR in double digits. However, this growth was driven by pricing. We continue to believe that with the relatively non-discretionary, mass pricing of our portfolio and very good performance on market shares, volume growth will return in the medium term. Our overall EBITDA declined by 13% (without one-offs) driven by unprecedented global commodity inflation, upfront marketing investments and a weak performance in our Indonesia and Latin America & SAARC businesses. PAT without exceptional items and one-offs declined by 16%.
From a geography perspective, India grew steady at 12%. Our Africa, USA and Middle East business continued its robust growth trajectory, growing at 12% in INR and in constant currency terms. Performance in our Indonesian business was weak, declining by 9% in INR and 12% in constant currency terms. From a category perspective, in India, we saw continued momentum in Personal Care, which grew by 25%. Home Care delivered a soft performance and declined by 4%. With inflationary pressures abating, we expect recovery in consumption and gross margins alongside continued higher marketing investments with a significant focus on reducing controllable costs.
We continue to have a healthy balance sheet and our net debt to equity ratio continues to drop. We are on a journey to reduce inventory and 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.