Q2 2025 Godrej Consumer Products Ltd Earnings Call Transcript
Key Points
- Godrej Consumer Products Ltd (BOM:532424) reported a 7% volume and value growth in its standalone India business, despite challenging market conditions.
- The company maintained its advertising and media investments at 11.6% of sales, even amidst margin pressures, indicating a strong commitment to brand building.
- Indonesia showed robust performance with 7% volume growth, 9% revenue growth, and 17% EBITDA growth, driven by core categories like air care and household insecticides.
- The Latin America business performed well with 50% unit volume growth, 46% sales growth, and double-digit EBITDA margins, suggesting a structural improvement in profitability.
- The company is optimistic about its revamped product portfolio, including the relaunch of HR with RN molecule, which is expected to drive future growth.
- EBITDA margins in the standalone India business were flat and at the lower end of the targeted range due to high palm oil prices and import duties.
- The soaps category is under pressure due to high palm oil prices, and the company expects volume growth to remain range-bound for the next few quarters.
- The Africa business experienced a decline in organic volumes and value, although reported EBITDA and Forex grew by 33%.
- The company anticipates continued margin pressure in the short term due to volatile palm oil prices and has not fully offset inflation with price increases.
- Urban general trade is facing challenges due to the rise of quick commerce and pressures on urban consumption, impacting overall growth.
Ladies and gentlemen, good day and welcome to the Godrej Consumer Products Limited Q2 FY25 earnings conference call.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the call? Please signal an operator by pressing star then zero on your touchtone phone.
Please note that this conference is being recorded.
I now hand the conference over to the GCPL team.
Thank you and over to you.
Good evening, everyone. Welcome to the Investor call for Godrej consumer products Limited. For GCPL we will have Mr Sudhir Sitapati and Mr Aasif Malbari. We will start with opening remarks by Sudhir following that we will go into Q&A. Now I welcome Sudhir for his opening remarks.
Thanks. Thanks Vishal.
Good
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