Fast-Moving Consumer Goods (FMCG) Godrej Consumer Products Ltd (GPCL) posted a loss of ₹1,893 crore as against ₹452 crore profit reported during the same quarter in March.

The company also reported a loss quarter on quarter with ₹581 crore profit in the December quarter.

The total revenue from operations for the company grew 5.7 per cent to ₹3,385 crore in Q4 (₹3,200 crore). Revenue also saw a 7.4 per cent decrease sequentially, as it had registered revenue of ₹3,659 crore reported in the quarter that ended in December.

Interim dividend

Further, the company announced an interim dividend of ₹10 per share (1,000 per cent on shares of face value of ₹1 each) for the financial year 2024-25. The record date for ascertaining the names of the shareholders entitled to receive the said dividend is May 14. The dividend will be paid on or before June 5, 2024.

Godrej Consumer consolidated volume grew 12 per cent and sales grew 6 per cent, while the India business volume grew 15 per cent and sales ₹12 per cent year-on-year. The home care segment grew 6 per cent, while the personal care segment grew 4 per cent. Park Avenue and Kama Sutra clocked ₹137 crore in sales during the quarter.

East Africa biz rejig

“We continue to remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability. We are launching new products in accordance with our purpose to bring the goodness of health and beauty to consumers — Cinthol Foam Bodywash has been launched in select markets in India in April at ₹120. This product targets the fast-growing Bodywash segment that is currently about ₹700 crore and growing at more than 20 per cent per annum. Stella Electric Diffuser, which will be launched in Indonesia at IDR 35,000, is aimed at rapidly expanding the penetration of the Air Freshener category. This is the first of its kind product in Indonesia.

“We continue to improve the strength of our balance sheet. We have completed the re-organisation in our East Africa business. We are happy to report that there will be a positive impact on PAT of ₹50 crore per annum despite the negative impact on revenue of about ₹470 crore per annum. We have taken an exceptional accounting charge of about ₹2,378 crore in our consolidated P&L statement. The impact of this charge is cash-positive. 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,” said Sudhir Sitapat, Managing Director and CEO, GPCL.

In the International business, the company’s volume grew 12 per cent in Indonesia, while sales grew 15 per cent and 17 per cent in constant currency (CC) terms, while the US, Africa and West Asia sales grew 16 per cent in CC terms but declined 23 per cent year on year. Latin America and SAARC sales grew41 per cent in CC year on year.

“The loss was an accounting loss and not cash outflow. The entire Africa reorganisation that we completed during the quarter will result in cash for the company and improve the margin. During the quarter, we saw the margin profile of the Africa business step up,” said Aasif Malbari, CFO, GPCL.

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