Godrej Consumer Products Q4 Results: Global Restructuring Leads To Surprise Loss
The maker of Goodknight mosquito repellent and Cinthol soaps reported a net loss of Rs 1,893.21 crore in Q4, as compared with a net profit of Rs 452.14 crore a year ago.
Godrej Consumer Products Ltd. has posted a net loss in the fourth quarter of fiscal 2024, even as revenue grew in line with analysts' estimates.
The maker of Goodknight mosquito repellent and Cinthol soaps reported a net loss of Rs 1,893.21 crore in the quarter-ended March, as compared with a net profit of Rs 452.14 crore a year ago, according to an exchange filing issued on Monday. That compares with the Rs 507.2-crore consensus forecast of analysts tracked by Bloomberg.
Profitability was impacted as the company has incurred a one-time exceptional loss of Rs 2,378 crore due to restructuring of business in Africa, USA, and Middle East region and another Rs 95 crore in other costs. Without the one-offs, GCPL reported a 22% growth in profit after tax to Rs 574 crore in the fourth quarter.
Godrej Consumer Q4 FY24 Highlights (Consolidated, YoY)
Revenue up 5.8% at Rs 3,386 crore (Bloomberg estimate: Rs 3,360.8 crore).
Ebitda up 14% at Rs 760.4 crore vs Rs 664.8 crore (Bloomberg estimate: Rs 742.2 crore).
Margin at 22.5% vs 20.8%
Net loss at Rs 1,893.2 crore vs profit of Rs 452.1 crore
Underlying volume grew 12% during the quarter, and 9% organically.
India business reported a 7% increase in organic volume and 5% growth in organic sales to Rs 1,870 crore.
For the full fiscal, GCPL reported a 21% increase in consolidated sales on constant currency terms, while sales in INR terms was impacted by devaluation. Volume grew 10%, led by India (13%) and Indonesia (11%).
"We delivered a strong performance for all the four quarters in FY24, despite challenging conditions across markets," said Godrej Consumer Products' Managing Director and Chief Executive Officer Sudhir Sitapati.
During the March quarter, the company completed the reorganisation of its East Africa business. "We are happy to report that there will be a positive impact on PAT of Rs 50 crore per annum despite the negative impact on revenue of Rs 470 crore per annum," Sitapati said.
The financial impact of the Rs 2,378-crore exceptional charge is cash positive, with a net present value of Rs 200 crore, according to the company.
Segmentwise, home care grew 6%, while personal care rose 4% during the quarter. Hair colours, air fresheners, and fabric care clocked double-digit volume growth. Household insecticide had a weak quarter due to extended winter in north India.
The recently acquired portfolio of Park Avenue and KamaSutra grew 22% to Rs 137 crore in a seasonally weak fourth quarter. "The integration has been completed and synergies have started to flow from Q4," the company said.
On the international business front, GCPL said that Indonesia delivered volume growth of 12% and sales growth of 15% to Rs 498 crore. The Africa, US and Middle East business delivered a sales growth of 16% in constant currency terms to Rs 593 crore, while performance in INR terms declined 23% impacted by devaluation of Naira. Sales in Latin America and SAARC region grew 41% to Rs 287 crore.
The board also recommended an interim dividend of Rs 10 per share for the financial year 2025.
Shares of GPCL closed 0.08% lower at Rs 1,228.85 apiece on the NSE, before the results were declared, as compared with a 0.15% decline in the benchmark Nifty 50 on Tuesday.
