Godrej Consumer profit surges 41% despite revenue dip

FMCG major Godrej Consumer Products (GCPL) posted a 41% surge in consolidated net profits in the first quarter of FY25, jumping to ₹450.69 crore from ₹318.82 crore in Q1 last year, even amidst declining revenues. The company’s Q1 FY25 financial results, released today after market hours, revealed a 3.4% decline in revenue from operations, dropping to ₹3,331.58 crore from ₹3,448.91 crore in the same quarter last year.

“Our EBITDA Margin improved by 310 bps year-on-year. We remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability. We continue to have a strong balance sheet,” said Sudhir Sitapati, Managing Director and CEO, of Godrej Consumer Products Limited (GCPL).

Although revenue from its Africa segment dropped by 35% to ₹544.57 crore from ₹848.57 crore in the year-ago quarter, profits before tax rose by 42% to ₹62.54 crore. The revenue both from the Indonesia and India segment rose by almost 8%, although profits before tax from its India business dropped 10% from ₹636.60 crore last fiscal’s first quarter to ₹570.48 crore this fiscal same period.

“In India, we delivered an organic volume growth of 8% and reported volume growth of 10%. The performance was broad-based across Home Care and Personal Care. In Indonesia, we continue to deliver robust performance with 7% volume growth. In organic terms, Africa, USA and the Middle East sales declined by 10% in constant currency terms while 25% in INR terms due to the depreciating Naira, however, offtakes continue to remain strong,” Sitapati states.

GCPL also declared an interim dividend of ₹5 per share of Re 1 face value for this financial year, with the record date set at August 16.

The company also unveiled its plans to venture into a new pet care products business through one of its subsidiaries, with an initial investment of ₹500 crore planned over 5 years. The company anticipates that this will diversify its revenue streams, with the nearly ₹5,000 crore pet food category expected to offer strong double-digit growth potential for the next few decades. GCPL plans to commence production in the second half of FY 2026.

The CEO shared that only a small chunk of 10% own any pet in India, of which only 10% feed packaged food and that too only 40% of the time.

“GAVL, our group company, is the market leader in animal feed and has a good understanding of pet foods R&D, with competitive advantages in the supply chain. GAVL will be our manufacturing and R&D partner,” Sitapati adds.

The company's shares closed today at ₹1,490.00, up 0.77% from the previous session.