GCPL Anticipates Mid-single-digit growth & Flat UVG In Q3 FY25

For the fiscal year 2025, Godrej Consumer Products anticipates mid-single-digit growth and a flat UVG in the next quarter (Q3). The FMCG giant claims that the main issues affecting its standalone business between the October and December quarters include the spike in palm oil costs, the postponed winters in the North, and cyclones in South India.

"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.

According to GCPL, the soap category, which accounts for one-third of the company's standalone revenue, was hurt by a 20–30 per cent year-over-year increase in palm oil and derivatives prices. GCPL claimed to have decreased the grammage of key packs and a number of trading schemes in order to offset the cost rise.

Due in part to improved commodity prices, GCPL generated margins of 29.7 per cent in FY 24. But according to the FMCG major, the current inflationary climate has put pressure on the margins.

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

Since these unfavourable trends are expected to last for a few months, the management of GCPL stated that it would continue to concentrate on navigating the short-term difficulties while keeping strategic investments for long-term growth.

In the September quarter of FY 23, Godrej Consumer reported a 13.52 per cent increase in its consolidated net profit to Rs 491.31 crore.

During the same time period, product sales revenue increased by 2.2 per cent to Rs 3,647.11 crore. In Q2 FY 25, HIT, the company that owns brands like Good Knight, had a 6.1 per cent increase in revenue to Rs 2,300.65 crore, while its expenses grew to Rs 3,039.88 crore.