Godrej Consumer expects modest Q2 growth amid high input costs, challenging conditions
Godrej Consumer Products stated that it will remain focused on three key areas in the current fiscal year- high single-digit Standalone underlying volume growth (UVG); high-single digit Indonesia UVG and mid-teens consolidated EBITDA
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Ahead of the announcement of the Quarter 2 results of the fiscal year 2025, Godrej Consumer Products has anticipated subdued consolidated EBITDA growth due to 'tougher' operating conditions and the high input cost of palm.
The Fast Moving Consumer Goods Company (FMCG) informed the stock exchanges that the management would not pass on the entire cost hike to consumers in one step.
Godrej Consumer Products stated that it will remain focused on three key areas in the current fiscal year- high single-digit Standalone underlying volume growth (UVG); high-single digit Indonesia UVG and mid-teens consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)growth.
The company is optimistic about the standalone and international businesses in the second quarter. "In terms of the top line, Standalone business is expected to perform well with high single-digit underlying volume and value growth. Our international businesses continue to do well on their relevant strategic objectives," the company said.
Godrej Africa, the US, and the Middle East may also witness a single-digit volume decline due to a reduction in trade stocks and portfolio simplification.
In quarter 1 (April-June), Godrej Consumer reported a 5.8 percent year-on-year dip in standalone net profit to Rs 367.84 crore, while the revenue surged by 7.9 percent to Rs 2,162.93 crore.
The standalone advertisement spending of the company in the June quarter stood at Rs 257 crore as against Rs 246.65 crore in the same period last fiscal year.
