Consolidated net revenue during the quarter rose 6 percent to Rs 2,659 crore.
FMCG major Godrej Consumer Products (GCPL) consolidated net profit for September quarter rose 59.7 percent on-year to Rs 577 crore driven by growth in revenue from domestic and Indonesia businesses and also on divestment of UK operations
Consolidated net revenue during the quarter rose 6 percent to Rs 2,659 crore. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) stood at 8.5 percent YoY at Rs 487 crore led by robust gross margin expansion.
Meanwhile, consolidated EBITDA margin stood at 18.3 percent against 21.2 percent a year ago and one time gain stood at Rs 259.7 crore.
The company declared interim dividend at Rs 4 per share for the financial year 2018-19. The dividend will be paid on 27 November, 2018.
Volume growth for the quarter stood at 5 percent
During the quarter, the consolidated constant currency sales increased by 8 percent year-on-year, while India business sales grew 10% year-on-year and International business sales went up 6 percent on year, on a constant currency basis.
Indonesia business sustained a growth momentum delivering constant currency sales growth of 14 percent, while GAUM (Africa, USA and Middle East) cluster had a relatively soft quarter with a constant currency sales growth of 4 percent.
Household Insecticides
Household Insecticides delivered a soft quarter. Sales declined by 2 percent as uneven distribution and deficient rainfall impacted demand, especially in South India and East India which account for around 60 percent of sales. The company said it will continue to scale up launches and focus on mass market innovation and trial generation SKUs to drive category penetration and make effective brand investments for future growth.
Soaps
Soaps delivered double-digit volume led sales growth of 11 percent led by micro-marketing initiatives, focus on new states and strong on-ground execution.
Hair Colours
Hair colours continues to gain momentum and delivered double-digit volume led sales growth of 21 percent.
The company said it will continue to focus on activation and effective media campaigns to recruit new consumers into the category.
The recently launched Godrej Nupur Herbal Based Powder hair colour is being rolled out in the market.
Commenting on the financial performance of 2Q FY 2019, Nisaba Godrej, Executive Chairperson, GCPL, said, “We had a mixed performance in the second quarter of fiscal year 2019. Our India business delivered double-digit sales growth and strong profit growth, while stepping up our investments in marketing.
"We continue to make healthy brand investments for sustainable future growth. With the scale-up of new launches and recovery in consumer demand, we expect to deliver much improved, profitable growth in the second half of this fiscal year, she added.
She also said that the company will remain focused on becoming more agile, increasing the pace of innovations, enhancing go-to-market approach and investing in key talent, to continue to outperform the market and deliver industry-leading returns.
