Godrej Consumer Products (GODREJCP) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 results showed underlying strength with India and Indonesia driving volume and EBITDA growth, while GAUM and LATAM focused on profitability through simplification and restructuring.

• India achieved 8% organic volume growth and Indonesia 7%, both on high bases, with strong constant currency revenue and EBITDA growth.

• Consolidated EBITDA grew 13% year-over-year, with net profit (excluding exceptionals) up 14%.

• New business initiatives included the launch of Godrej Pet Care and innovative Home Care products like Goodknight Liquid Vaporiser and HIT Spray Matic.

• Exceptional items for the quarter included ₹20.30 crore in restructuring costs as part of a group-wide strategy refresh.

Financial highlights

• Consolidated revenue declined 3% (reported) to ₹3,331.58 crore, but grew 9% in constant currency; EBITDA margin expanded by 310 bps to 21.9%.

• India EBITDA grew 8% despite margin pressure from palm oil price increases; India business net sales were ₹2,140 crore, up 9% year-over-year.

• Indonesia reported 3% rupee revenue growth and 24% EBITDA growth; in constant currency, revenue grew 11% and EBITDA 32%.

• GAUM organic volumes fell 21% and revenue 25%, but EBITDA grew 19%, with margins at 14%.

• Net profit (excluding exceptionals) was ₹470 crore, up from ₹413 crore last year; reported net profit was ₹367.84 crore.

Outlook and guidance

• Expect positive pricing in India from Q2 onwards, with full-year pricing growth of 2-3% and high single-digit to low double-digit volume growth.

• Indonesia growth to be more broad-based, with both HIT and Stella contributing.

• GAUM volume growth may remain under pressure for 1-2 quarters due to trade destocking, but profitability is expected to remain strong.

• The company is undergoing a strategy refresh, with ongoing restructuring actions expected to impact future quarters.

• On track to achieve full-year ambitions for Park Avenue and KamaSutra brands.