Godrej Consumers profit flat at ₹363 crore in Q4

Ayushi Kar _11511 | | Updated on: May 19, 2022
Sudhir Sitapati, Managing Director and CEO, GCPL

Sudhir Sitapati, Managing Director and CEO, GCPL | Photo Credit: Balaji W S@Chennai

Home care segment posts weak performance compared to personal care space

FMCG major Godrej Consumer Products Ltd’s profits for the fourth quarter of FY22 reduced by 0.7 per cent to ₹363.24 crore from ₹365.84 crore reported in the same quarter last year. Revenue from operations rose 7 per cent to ₹2,894.15 crore in Q4FY22 from ₹2,705.69 in Q4FY21. 

For fiscal 2022, profits rose 3.5 per cent to ₹1,783.39 crore from ₹1,720.82 crore in fiscal 2021. Annual revenues from operations rose by 11.3 per cent to ₹12,174 crore, from ₹10,936 crore revenue in 2021

In its investor presentation, the company reported sales growth of 7 per cent overall. The Indian market saw a steady growth of 9 per cent according to GCPL, with a compound annual growth rate of 21 per cent. The Africa, US and Middle East markets grew 14 per cent meanwhile the Latin America & SAARC region grew 26 per cent for GCPL. 

The home care segment had a weak performance for GCPL in comparison to the personal care space. Home care saw degrowth of 7 per cent in Q4FY22, while the personal care segment grew by 18 per cent in the same period. 

EBITDA margins

Consolidated EBITDA margins were 18.1 per cent (9 per cent degrowth); margins decrease by 320 bps year-on-year. GCPL attributes it to higher commodity inflation and weak performance in Indonesia. 

“EBITDA margins in India at 23.6 per cent; expanded by 100 bps year on year, while gross margins declined by ~410 bps (due to higher commodity inflation), however, the trend is improving as the year-on-year drop is lower sequentially,” GCPL noted.

The company stated that it has a mixed performance in Home Care and Personal Care, although it gained market share in approximately 85 per cent of their categories. The company stated that it continues to strengthen its e-commerce business, with approximately 6 per cent of its branded sales happening on those channels. 

Sudhir Sitapati, Managing Director and CEO, GCPL, said that the company’s performance for Q4FY22 was “weak overall”. He explained, “We delivered a weak performance in 4Q FY 2022. Overall sales grew by 7 per cent and our full year sales grew in double-digits. However, this growth was driven by pricing. We continue to believe that with the relatively non-discretionary, mass pricing of our portfolio and very good performance on market shares, volume growth will return in the medium term. Our overall EBITDA declined by 9 per cent  (without one-offs) driven by unprecedented global commodity inflation and scale deleverage in Indonesia. PAT without exceptional items and one-offs declined by 4 per cent.”

Published on May 19, 2022
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