Godrej Consumer Products Q3: Profit drops 14% to Rs 498 cr, revenue up 3%

Godrej Consumer Products Q3FY25 results: The company declared an interim dividend of Rs 5 per share for FY25

FMCG major Godrej Consumer Products Limited (GCPL) on Friday reported a 14.2 per cent drop in consolidated net profit for the third quarter (Q3) of the financial year 2024-25 (FY25) at Rs 498.31 crore from Rs 581.06 crore reported during the same period last year. Sequentially, however, profit rose marginally by 1.4 per cent from Rs 491.31 crore.

 

Consolidated revenue from operations went up marginally year-on-year to Rs 3,768.43 crore from Rs 3,659.64 crore. Sequentially, revenue increased by 2.8 per cent from Rs 3,666.33 crore.

 

The company’s consolidated Ebitda margin stood at 20.2 per cent, while its standalone Ebitda margin was 22.6 per cent, impacted by palm oil price inflation. In terms of sales, GCPL experienced a 4 per cent growth in India, though volumes remained flat. Overall, the company saw a 21 per cent year-on-year decline in Ebitda.

 

Segment-wise performance

Home care grew by 4 per cent year-on-year (Y-O-Y). Highlights include:

 

• Household insecticides: Weak seasonality and urban consumption slowdown impacted premium formats, though Goodknight Agarbatti gained significant market share in the incense sticks category.
• Air fresheners: Double-digit volume growth; new launches include Mini Aer Pocket and re-launched Aer Spray at Rs 99.
• Fabric care: Strong double-digit growth, with Godrej Fab expanding nationally.

 

Personal care grew by 2 per cent Y-o-Y. Highlights include:

 

• Personal wash: Volumes declined mid-high single digits due to palm derivative inflation, offset by pricing growth. Significant price hikes are expected to continue impacting margins.
• Hair colour: Mid-single-digit growth, with Godrej Expert Rich Crème and shampoo-based hair colours achieving double-digit growth.
• Sexual wellness: Double-digit value growth, with market share gains.

 

Sudhir Sitapati, managing director and CEO, highlighted that urban consumption slowdown and a 40 per cent surge in palm oil prices weighed on margins. However, strong performance in select categories, like Air Fresheners and Goodknight Agarbatti, and share gains in premium formats indicate resilience. 

 

"We remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability. We continue to have a strong balance sheet. We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development," Sitapati said. 

 

Devidend declared

The company declared an interim dividend of Rs 5 per share (500 per cent on equity shares of face value Re 1 each) for FY25. The record date is set for February 3, 2025, and the dividend will be paid on or before February 23, 2025.

 

Shares of Godrej Consumer Products closed at 1,128.60, down 1.4 per cent on the BSE on Friday, ahead of the company's Q3 results.