Godrej Consumer Products Ltd has expected a flattish UVG and mid-single-digit growth in the upcoming quarter (Q3) for the fiscal year 2025. According to the FMCG firm, the surge in palm oil prices, delayed winters in the North, and cyclones in south India are the key factors that would impact standalone business of the company between October and December quarter.
“The weather conditions have not been supportive to the home insecticides segment, contributing 1/3rd to standalone business. This has impacted the HI category growths in the current quarter,” Godrej Consumer said in a BSE filing.
GCPL said that a surge in palm oil and derivatives prices to the extent of a year-on-year increase of 20-30 percent impacted the soap category, which represents 1/3rd of the standalone revenue. To offset the cost increase, GCPL said it reduced the grammage of key packs and reduced various trade schemes.
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In FY 24, GCPL delivered margins of 29.7 percent, driven in part by favourable commodity prices. However, the current inflationary environment has created pressure on the margins, the FMCG major said.
“Due to the confluence of factors, we anticipate a temporary downward breach of the normative margins this quarter,” GCPL added.
The GCPL management said it would remain focused on navigating the near-term challenges while maintaining strategic investments for long-term growth as these negative trends are likely to persist for a few months.
Godrej Consumer Q2 FY25: Net profit rises 12% to Rs 491 crore, ad spend remains flat
Godrej Consumer reported a 13.52 percent rise in its consolidated net profit to Rs 491.31 crore in the September quarter FY 23.
The revenue from the sale of products grew 2.2 percent to Rs 3,647.11 crore in the same period. The owner of brands like Good Knight, HIT increased its expenses to Rs 3,039.88 crore in Q2 FY 25, and its revenue climbed 6.1 percent to Rs 2,300.65 crore.