Godfrey Phillips Leaving "24Seven" Retail Behind

12 Apr 2024 , 08:14 PM

Godfrey Phillips India Ltd. informed exchanges on April 12 that it will be closing its retail business division 24Seven after conducting a thorough assessment of its operations.

“…after due consideration of the stakeholders’ feedback, long-term performance of the division since inception, prevailing market conditions of retail sector and long-term business strategy of the company, the Board of Directors of the company at its meeting held today has decided to exit from carrying out the business operations of its Retail Business Division,” Godfrey Philips stated in a statement.

Godfrey Philips said the withdrawal will depend on the completion of the required formalities.

Godfrey Philips’ stock rebounded after the announcement, rising over 1% to ₹3,123.65.

The retail business division’s revenue from operations in FY23 was ₹396 crore, or 9.3% of Godfrey Phillips’ overall revenue from operations, as per the most current audited financial records. However, according to the company’s registration, as of March 31, 2023, the retail business division declared a negative net worth as a result of accumulated losses.

Godfrey Phillips is an Indian tobacco company that was founded in 1844.

One of its well-known endeavors is 24Seven, a well-organized retail chain that offers convenience store styles that are open 24/7. 24Seven has more than 145 outlets and is present across Telangana, Punjab, and the Delhi NCR. According to Godfrey Phillips’ FY23 annual report, 24Seven’s gross sales increased by 19% year over year to ₹482 crore in FY23.

The corporation ascribed this expansion to better operating results in comparison to FY22. Sustained cost-cutting initiatives and improvements in product mix, which raised margins, were the main drivers of this development. In addition, initiatives to increase the share of private label and food and beverage products are meant to increase gross margins even more.

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