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Godrej Consumer Products’ consolidated profit in the second quarter of FY24 rose about a fifth on year, with revenue rising 6.2 per cent, underpinned by 10 per cent volume growth.
The company reported a net profit of ₹432.7 crore on revenue of ₹3,602 crore. The constant currency growth during the quarter was 16 per cent.
Revenue from domestic sales saw a rise of 9 per cent to ₹2,129 crore, led by 11 per cent volume growth. Sales in Indonesia saw a health growth of 16 per cent in rupee terms, while other markets such as Africa, the US, West Asia, and Latin America showed a 5 per cent sales growth.
Steady performance
“We delivered a steady performance in Q2 FY24, despite the tough operating environment,” said MD and CEO, Sudhir Sitapati. “Our quality of profits continues to improve consistently over the last few quarters with reported consolidated gross margin improving sharply 700 bps year-on-year and 110 bps quarter-on-quarter,” he added.
At a consolidated level, EBITDA was up 30 per cent on year and EBITDA margin improved 360 bps year-on-year “despite continued media investments.” Except for Latin America and SAARC countries, all other geographies showed strong margin expansion.
Its advertising and promotion spends rose about a third in the quarter.
Senapati said that the company was focused on driving volume-led growth along with healthy investments in its brands and improvement in profitability.
At a more granular level, home care segment saw a growth of 5 per cent, while personal care segment declined 1 per cent.
Its newly-acquired brands Park Avenue and KamaSutra from the Raymond stable also saw sharp improvement in sales run-rate with sales of ₹142 crore in the quarter. The company said that the cost synergies will start in the integration of the brands will start from the second half of the current fiscal.
The company, which announced a dividend payout of ₹5 a share aggregating ₹511 crore, said that it expected dividend payout ratio to average at around 50 per cent of the annual PAT of the company.
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