Godrej Consumer Products Limited (GCPL) announced its financial results for the quarter ending December 31, 2023.
During the third quarter of the present fiscal year, Godrej increased its expenditure on advertising and publicity by 24.47 percent YoY, amounting to Rs 343.27 crore. In the corresponding quarter of the previous year, it had allocated Rs 275.78 crore for the same purposes.
The Q3 FY 2024 consolidated volume grew at 8 percent, sales grew by 2 percent in INR terms impacted by devaluation, constant currency growth of 19 percent year-on-year India business volume grew by 12 percent, sales grew by 9 percent year-on-year Indonesia volume grew by 9 percent, sales grew by 8 percent in INR terms and 7 percent in constant currency terms, year-on-year Africa, USA, and Middle East sales declined by 8 percent in INR terms and grew by 14 percent in constant currency terms, year-on-year Latin America and SAARC sales declined by 45 percent in INR terms and grew by 181 percent in constant currency terms, year-on-year 03 FY 2024 Consolidated EBITDA* grew by 16 percent year-on-year.
Commenting on the business performance of Q3 FY 2024, Sudhir Sitapati, Managing Director, and CEO, GCPL, said, “We continue to deliver steady performance in Q3FY24 despite challenging market conditions. Our Consolidated volumes grew by 8%, led by the India business growing volumes at 12% and Indonesia growing volumes at 9%. Godrej’s consolidated revenue growth was significantly impacted by the devaluation of the Naira and the Argentine Peso with sales growing at 2 percent in INR terms and 19 percent in constant currency terms. Our quality of profit continues to improve consistently on the back of superior growth in higher margin countries and categories. Our reported Consolidated gross margin improved sharply by 470 bps year-on-year and 100 bps quarter-on-quarter. Our EBITDA margin, too, improved by 280 bps year-on-year despite continued media investments, which increased
by 32 percent year-on-year.
He added, “We continue to remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability. We have launched two new products in the Indian market. (1) Godrej Fab Liquid Detergent, at a category-defining price of 99 per litre. We have entered the 1,200 crore market of Anti-Mosquito Incense Sticks segment that is dominated by illegal players. Goodknight Agarbatti is India’s only government registered active based anti-mosquito Agarbatti with our new and exclusive molecule RNF (-2x more effective than other molecules used in India). 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. We remain committed to our purpose of bringing the goodness of health and beauty to consumers in emerging markets.”
Home Care grew by 5 percent
Household Insecticides volume growth stable at low-single digit. The non-mosquito portfolio continues to consistently perform significantly well. We are also on track to turnaround HI — Launched Goodknight Agarbatti in January, additional actions in the pipeline.
New Launch: Entered the ~ 1,200 crore market of Anti-mosquito Incense Sticks that is dominated by illegal players. Goodknight Agarbatti is India’s only government registered active based anti-mosquito Agarbatti. Goodknight Agarbatti uses a new molecule, RNF, which is close to 2x more effective than most other molecules used in India. GCPL enjoys exclusivity to use this molecule in the medium term. Air Fresheners continues to consistently deliver double-digit volume growth. Aer continues to gain share and enjoy market leadership. Air Fresheners has close to doubled its salience over last 2 years. Fabric Care delivered strong double-digit volume growth. Genteel and Ezee continue to deliver steady performance.
New Launch: Launched Godrej Fab Liquid Detergent in select markets of South India at a category-defining price of 99 per litre.
Personal Care grew by 2 percent
Personal Wash delivers mid-single digit volume growth. The company’s market share increased, led by effective media campaigns and micro-marketing initiatives. Magic Handwash continues to deliver strong double-digit volume growth.
Hair Colour volumes grew in double-digit led by both Godrej Expert Rich Creme and Godrej Selfie Shampoo Hair Colour. Access packs have significantly outperformed in both Godrej Expert Rich Creme and Shampoo Hair Colour.
Park Avenue and KamaSutra
Park Avenue and KamaSutra continue their healthy sales run-rate delivered in 02 and clocked sales of 139 crore.