Godrej Consumer Products’ Q4 margins hit by rise in palm oil prices

[ad_1]

With an impact on urban consumption, the Fast-Moving Consumer Goods (FMCG) maker Godrej Consumer Products Ltd posted a .₹411 crore profit with a 6.26 per cent increase in revenue for the quarter that ended in Q4.

The company saw an underlying volume growth of 6 per cent, sales grew by 7 per cent, while the consolidated EBITDA margin grew by 1 per cent year-on-year. A surge in palm oil prices impacted the consolidated EBITDA margin of the company. During the quarter, the palm oil prices surged by more than 50 per cent.

GPCL had registered a loss of ₹1,893 crore for the quarter that ended on March 31, 2024. The company stated that for the year ended on March 31, 2024, exceptional items in the consolidated financial results include impairment loss of 1,390.8 crore towards Brand and Goodwill for Africa (including Strength Of Nature) and 927.2 crore relating to the loss on sale of subsidiaries and business in East Africa pursuant to changes in business model and long-term strategy for Africa (including Strength Of Nature), and 3 71.0 crore on account of other group restructuring costs, including employees’ severance pay and inventory related costs etc necessitated by the restructuring.

Godrej Consumer Products declared an interim dividend of ₹5/- per share (500 per cent on equity shares of face value of Re. 1/- each) for the financial year 2025-26.

The company’s total revenue from operations in the March quarter was at ₹3,385 crore.

“The demand conditions in India have continued to be impacted by headwinds in urban consumption. Our consolidated organic volumes for Q4FY25 grew by 6 per cent, led by the India business growing volumes at 4 per cent and Indonesia growing volumes at 5 per cent. Our consolidated organic revenue growth for Q4 and FY 2025 stood at 7 per cent and 4 per cent, respectively,” said Sudhir Sitapati, Managing Director and CEO of GCPL.

In the domestic market, home care and personal care grew by 14 per cent and 4 per cent respectively. In international business, volumes grew by 5 per cent while sales grew by 1 per cent in constant currency terms. Africa, US and the Middle East sales grew by 23 per cent.