Godrej Consumer Products Net Profit Up 8%

The consolidated net profit for Godrej Consumer Products increased on a YoY basis to Rs 143.45 crore in June’14 from Rs 132.71 crore, up 8%. This was mainly due to increase in net sales which rose to Rs 1888.51 crore in June’14 from Rs 1726.90 crore in June’13.  

The total expenses were up to Rs 250.20 crore in June’14 from Rs 239.06 crore in June’13. This can be attributed to increase in cost of raw material consumed including packing material consumed, employees benefit expenses and advertisement & publicity. This affected the net profit margin slightly which was down to 7.6% in June’14 from 7.7% in June’14.

Earnings before interest, taxes, depreciation and amortization (EBITDA), a measure of company’s operating profitability, stood at Rs 242 crore in June’14 as against Rs 229 crore in the same quarter last year (YoY). EBITDA margin stood at 6%. 

The business in international markets has grown by 17% and 6% domestically (YoY). The management expects the growth to continue in the coming quarters. Also, the company is in a much stronger position to capitalize on the growth opportunities ahead, said Adi Godrej, Chairman, Godrej Group. 

Coming to the segment wise performance, the hair color segment grew by 14%, the household insecticides grew by 9% and soaps by 2% (QoQ). It has recently launched new product Godrej Protekt, a hand sanitizer. Geographically, the company has registered a good growth of 26% in Latin America, 21% in Indonesia, 21% in Europe and 12% in Africa. It is also a market leader in Argentina and Chile in Latin America. The above growth figures are on constant currency basis which eliminates the exchange rate fluctuations while calculating financial performance.