Q2FY23 Quarterly Result Announced for Godrej Consumer Products Ltd.
Godrej Consumer Products announced Q2FY23 results: 2QFY 2023 consolidated sales grew by 7% YoY; 3-year CAGR 9% India business sales grew by 8% YoY, 3-year CAGR 9% Indonesia sales declined by 8% in INR and 11% in constant currency terms, YoY; Ex-hygiene growth of 12% in INR and 8% in constant currency Africa, USA and Middle East sales grew by 15% in INR and 13% in constant currency terms, YoY; 3-year CAGR 13% in constant currency Latin America & SAARC sales declined by 1% in INR and grew 34% in constant currency terms, YoY; 3-year CAGR 30% in constant currency 2QFY 2023 consolidated EBITDA declined by 15% YoY 2QFY 2023 consolidated net profit declined by 21% YoY (without exceptional items and one-offs) Commenting on the business performance of 2QFY 2023, Sudhir Sitapati, Managing Director and CEO, GCPL, said: We delivered a steady performance in 2Q FY 2023. Overall sales grew by 7% with 3-year CAGR of 9%. However, this growth was driven by pricing. We continue to believe that with the relatively nondiscretionary, mass pricing of our portfolio and good performance on market shares, volume growth will return in the short term. Our overall EBITDA declined by 15% driven by consumption of high cost inventory, upfront marketing investments and a weak performance in our Indonesia and Latin America & SAARC businesses. PAT without exceptional items and one-offs declined by 21%. From a geography perspective, India grew steady at 8%. Our Africa, USA and Middle East business continued its robust growth trajectory, growing at 15% in INR and 13% in constant currency terms. Performance in our Indonesian business was weak, declining by 8% in INR and 11% in constant currency terms. Indonesia growth ex-hygiene category in the base 8% in constant currency. From a category perspective, in India, we saw continued momentum in Personal Care, which grew by 18%. Home Care grew by 2%. With inflationary pressures abating, we expect recovery in consumption and gross margins alongside continued higher marketing investments with a significant focus on reducing controllable costs. We continue to have a healthy balance sheet and our net debt to equity ratio continues to drop. We are on a journey to reduce inventory and wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development. We remain committed to our purpose of bringing the goodness of health and beauty to consumers in emerging markets. Result PDF08-11-2022
