Godrej Consumer Products (GODREJCP) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 was challenging, with weak India business performance offset by stronger international results, especially in Indonesia and Latin America, and recognition among the top 3 global FMCG companies in the Dow Jones Sustainability Index 2024.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved, with statutory auditors issuing an unmodified review report.

• Interim dividend of ₹5 per share (500% of face value) declared for FY 2024-25, with record date set for February 3, 2025, and payment by February 23, 2025.

Financial highlights

• Consolidated organic revenue grew 6% year-over-year in rupee terms, with consolidated revenue from operations for Q3 FY25 at ₹3,768.43 crore.

• Consolidated EBITDA margin held at about 20%, with net profit after tax for Q3 FY25 at ₹498.31 crore.

• India revenue grew 4% year-over-year, but EBITDA declined 21% due to macro slowdown and high palm oil prices.

• International businesses, especially Indonesia and Latin America, delivered strong growth in volumes, revenue, and EBITDA.

• Latin America and Others reported 165% sales growth year-over-year.

Outlook and guidance

• Most margin and volume pressures are considered transitory, with sequential improvement expected in Q4 FY25 and normalization by H1 FY26.

• Margin pressure in Personal Wash expected to persist due to palm derivative inflation; further price increases in soaps anticipated to restore margins to the 24–26% range over the next two to three quarters.

• Ongoing restructuring and strategy refresh across the group, with related costs recognized as exceptional items.

• International business, especially Africa, expected to return to positive organic revenue growth from Q4 FY25.

• Urban slowdown remains a concern, but rural growth is robust, aided by van operations.