Godrej Consumer Reports Net Loss in Q4

7 May 2024 , 10:44 AM

On May 6, Godrej Consumer Products Limited (GCPL) revealed that, compared to a net profit of ₹452 Crore, the company had a consolidated net loss of ₹1,893 Crore for the March quarter. In the prior quarter, the company reported earnings of ₹581.06 Crore.

A one-time exceptional loss of ₹2,376 Crore was also incurred during the quarter.

According to a regulatory filing, the company’s overall sales increased by 6% to ₹3,385.61 Crore from ₹3,200.16 Crore the previous year.

Additionally, the board suggested paying an interim dividend of ₹10 per share for the 2023–2024 fiscal year.

“We are still committed to increasing profitability and pursuing volume-led growth in addition to making sound brand investments. According to our mission to provide consumers with the goodness of health and beauty, we are introducing new goods,” stated Sudhir Sitapati, MD and CEO.

The home care segment grew by 6%, with the fabric care and air fresheners divisions performing particularly well. Air Fresheners continued to rise at a double-digit rate, driven by Aer’s growing market share and leadership in the industry. Fabric Care grew by double digits, propelled by brands such as Fab, Genteel, and Ezee. Goodknight Agarbatti is a recent addition to the Personal Care industry that is rapidly transforming the ₹21,200 Crore Mosquito Incense Sticks business.

Goodknight Agarbatti is unique in that it is the only government-registered active anti-mosquito incense stick in India. It uses a new compound called RNF, which is almost twice as effective as the majority of other recognized compounds used in India.

For the medium term, this molecule is exclusively owned by GCPL. Volume was the main driver of the 4% growth in Personal Care. Personal Wash demonstrated strong, single-digit volume growth, and we increased our market share by implementing strategic micro-marketing initiatives and running efficient media campaigns. Especially noteworthy was Magic Handwash’s remarkable double-digit volume rise.

With sales of ₹137 Crore in accordance with the category’s seasonal patterns, Park Avenue and KamaSutra continued their sales momentum from Q4. After the merging process was completed, during Q4 synergistic effects have started to emerge.

With a strong double-digit volume growth of 12% and a sales rise of 17% (measured in constant currency) or 15% in terms of Indian Rupees, Indonesia has made great progress.

The EBITDA margin for the current year is 25.2%, a significant rise of 360 basis points over the prior year. Aerosol products were the key driver of the robust double-digit increase in household insecticide volumes, which allowed the company to keep onto its leadership position and grow its market share.

Furthermore, Hair Color saw significant double-digit volume growth, driven mostly by Shampoo Hair Color variations.

The company’s Middle East, Africa, and USA division saw a respectable 16% increase in sales in constant currency terms; however, the depreciation of the Naira had an impact on performance in Indian Rupees. There was consistent double-digit increase in all FMCG categories. Significantly, the EBITDA margin increased by 720 basis points year over year to 14.3%. This gain was mostly brought about by improvements in the product mix and growth in gross margins, highlighting the segment’s dedication to long-term profitability and growth.

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