Godrej Shopper Merchandise Q3 Outcomes: Revenue drops 14% YoY to ₹498 crore; rising RM prices have an effect on margins

Godrej Shopper Merchandise, a number one FMCG firm, introduced its monetary outcomes for the quarter ending December 31, 2024, on January 24, reporting a 14.28% year-on-year (YoY) decline in consolidated web revenue, which reached ₹498 crore.

In the identical interval final yr, the corporate posted a web revenue of ₹581 crore, and within the previous September quarter, it reported a revenue of ₹491.31 crore.

The efficiency in each the Dwelling and Private Care segments was gentle, with Dwelling Care revenues at ₹1,095 crore, marking a 4% YoY enhance, whereas Private Care posted revenues of ₹1,044 crore, reflecting a 2% YoY development.

The corporate’s income from the Indonesia area grew by 9% YoY to ₹508 crore. Nonetheless, income from Africa, the USA, and the Center East declined by 8% YoY and 1% quarter-on-quarter (QoQ), totaling ₹771 crore.

Conversely, Latin America and different areas skilled robust income development, with income at ₹262 crore, reflecting a 165% YoY and 28% QoQ enhance. Total, the corporate’s complete income grew marginally by 3% YoY and a pair of% QoQ, reaching ₹3,749 crore.

The corporate’s margins have been impacted by rising uncooked materials costs, whereas weak point in city consumption led to sluggish quantity development. The surge in palm oil prices has negatively impacted its EBITDA margin, which stood at 22.6%, decrease than its typical margin. For comparability, the corporate posted an EBITDA margin of 29% in Q3FY24.

Quantity development challenges

Commenting on the enterprise efficiency of Q3 FY 2025, Sudhir Sitapati, Managing Director and CEO, GCPL, stated, “Demand circumstances in India have witnessed short-term headwinds over the previous few months, led by a slowdown in city consumption. A surge in palm oil costs of greater than 40% together with weak seasonality in family pesticides has led to a flat underlying quantity development and mid-single-digit underlying gross sales development for our standalone enterprise.”

Premium codecs in family pesticides have been impacted on account of city slowdown and class seasonality; nonetheless, we now have began to achieve market share inside premium codecs, which means that the RNF molecule is working amongst shoppers.

“We stay targeted on driving volume-led development together with wholesome investments in our manufacturers and enchancment in profitability. We proceed to have a robust stability sheet. We’re on observe in our journey to cut back wasted value and are deploying this to drive worthwhile and sustainable quantity development throughout our portfolio by means of class growth,” Sudhir added.

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