Godrej Consumer Q1 Net Profit Declines 4.7%

New Delhi, Aug 7 (PTI) Godrej Consumer Products Ltd on Thursday reported a marginal decline in consolidated profit after tax to Rs 452.45 crore in the first quarter ended June 30, 2025, impacted by higher raw material cost and challenges in the Indonesian business.

The company had posted a consolidated profit after tax of Rs 450.69 crore in the corresponding period last fiscal, Godrej Consumer Products Ltd (GCPL) said in a regulatory filing.

Consolidated revenue from operations in the first quarter stood at Rs 3,661.86 crore as against Rs 3,331.58 crore in the year-ago period, it added.

Total expenses were higher at Rs 3,113.14 crore in the quarter as compared to Rs 2,744.36 crore in the same period last fiscal. Cost of raw materials, including packing material consumed was higher at Rs 1,480.31 crore as against Rs 1,289.68 crore in the same period a year ago, the company said.

For the quarter ended June 30, 2025, exceptional item in the consolidated financial results includes an amount of Rs 19.54 crore related to litigation settlement in Indonesia, it added.

The board has declared an interim dividend at the rate of Rs 5 per share of the face value of Re 1 each, GCPL said.

GCPL Managing Director and CEO, Sudhir Sitapati said Q1FY26 has been a good quarter, in particular on a standalone basis, excluding soaps, delivering an underlying volume growth around teens, led by robust broad-based performance.

India has had a good quarter, delivering revenue growth of 8 per cent and volume growth of 5 per cent, he said, adding soaps volume growth was "impacted by volume-price rebalancing".

"Our international business has been impacted due to macro headwinds and competitive pricing pressures in Indonesia which was compensated by strong performance in Africa," he noted.

Sitapati further said,"Our Indonesia business has been impacted by macro headwinds and competitive pricing pressures. However, we expect this to be transitory in nature with the situation likely to improve in a few months.".

In India, sales grew by 8 per cent to Rs 2,307 crore, GCPL said, adding the home care segment grew by 16 per cent while personal care was up 1 per cent.

The company further said Indonesia faced a difficult quarter. Macro headwinds and increased competitive intensity led to flat underlying volume growth (UVG). Sales de-grew by 4 per cent in constant currency and Indian rupee terms.
On the other hand, in Africa, US, and Middle East organic sales grew 30 per cent in Indian rupee terms.

On the outlook, Sitapati said,"...we expect performance to improve sequentially in FY26 with the second half performance expected to be better than the first half. Standalone EBITDA margin in H1FY26 is likely to be below our normative range but is expected to improve in the second half."

While palm oil prices started moderating towards the end of June, benefits of this moderation will only be realized in H2FY26, he said.

"We believe that we are on track to deliver mid-high-single digit UVG for our standalone business, high-single digit consolidated INR revenue growth and double-digit consolidated EBITDA growth for the full year," Sitapati said.