GCPL's Q3 FY25 outlook: Flattish growth, margin pressure amid inflationary environment

The GCPL management said it would remain focused on navigating the near-term challenges while maintaining strategic investments for long-term growth as these negative trends are likely to persist for a few months.

By  Storyboard18Dec 9, 2024 12:35 PM
GCPL's Q3 FY25 outlook: Flattish growth, margin pressure amid inflationary environment
Godrej Consumer Products Limited (GCPL) has expected a flattish UVG and mid-single-digit growth in the Q3

Godrej Consumer Products Ltd has expected a flattish UVG and mid-single-digit growth in the upcoming quarter (Q3) for the fiscal year 2025. According to the FMCG firm, the surge in palm oil prices, delayed winters in the North, and cyclones in south India are the key factors that would impact standalone business of the company between October and December quarter.

"The weather conditions have not been supportive to the home insecticides segment, contributing 1/3rd to standalone business. This has impacted the HI category growths in the current quarter," Godrej Consumer said in a BSE filing.

GCPL said that a surge in palm oil and derivatives prices to the extent of a year-on-year increase of 20-30 percent impacted the soap category, which represents 1/3rd of the standalone revenue. To offset the cost increase, GCPL said it reduced the grammage of key packs and reduced various trade schemes.

In FY 24, GCPL delivered margins of 29.7 percent, driven in part by favourable commodity prices. However, the current inflationary environment has created pressure on the margins, the FMCG major said.

"Due to the confluence of factors, we anticipate a temporary downward breach of the normative margins this quarter," GCPL added.

The GCPL management said it would remain focused on navigating the near-term challenges while maintaining strategic investments for long-term growth as these negative trends are likely to persist for a few months.

Godrej Consumer reported a 13.52 percent rise in its consolidated net profit to Rs 491.31 crore in the September quarter FY 23.

The revenue from the sale of products grew 2.2 percent to Rs 3,647.11 crore in the same period. The owner of brands like Good Knight, HIT increased its expenses to Rs 3,039.88 crore in Q2 FY 25, and its revenue climbed 6.1 percent to Rs 2,300.65 crore.


Tags
First Published on Dec 9, 2024 12:35 PM

More from Storyboard18

Brand Marketing

Karnataka HC refuses X Corp's interim relief in challenge to Govt's Sahyog portal blocking system

Karnataka HC refuses X Corp's interim relief in challenge to Govt's Sahyog portal blocking system

Brand Marketing

NCLT rejects insolvency plea against Zomato, providing relief amid legal dispute

NCLT rejects insolvency plea against Zomato, providing relief amid legal dispute

Brand Marketing

Unilever acquires personal care brand Wild

Unilever acquires personal care brand Wild

Brand Marketing

Schbang MMaximise co-founder Masoom Minawala steps down

Schbang MMaximise co-founder Masoom Minawala steps down

Brand Marketing

Ola, Uber, Rapido bike taxi services halted by Karnataka High Court

Ola, Uber, Rapido bike taxi services halted by Karnataka High Court

Brand Marketing

Hero MotoCorp records 5.9 million sales in FY’25; expands EV and global footprint

Hero MotoCorp records 5.9 million sales in FY’25; expands EV and global footprint

How it Works

ChatGPT data stored outside India, copyright act does not apply in ANI case: OpenAI to Delhi HC

ChatGPT data stored outside India, copyright act does not apply in ANI case: OpenAI to Delhi HC

Brand Marketing

Global Ads Spotlight: How Verizon and Beyonce's Super Bowl ad broke the internet and the network

Global Ads Spotlight: How Verizon and Beyonce's Super Bowl ad broke the internet and the network