Godrej Consumer Products Limited (GCPL) has provided its quarterly update for Q2 FY25, outlining key performance trends ahead of the full financial results. The company reported that while its standalone and Indonesia operations are largely on track to meet high single-digit underlying volume growth (UVG) targets, consolidated EBITDA growth will be lower than expected due to inflationary pressures.
Key factors affecting GCPL’s margins include rising palm oil costs, which have increased in the high teens since March 2024. Despite these cost pressures, the company has opted not to pass the entire price hike onto consumers, instead prioritizing long-term growth investments such as rural expansion and new category development. This has led to flattish standalone EBITDA growth.
International performance: GCPL’s Indonesia business continues to perform well, with high single-digit volume growth and double-digit sales growth in constant currency. However, the GAUM (Godrej Africa, USA, and Middle East) region saw a single-digit volume decline, primarily driven by trade stock reduction and portfolio simplification. Despite challenges like the currency unification in Nigeria, the region posted strong double-digit EBITDA growth in INR terms.
At the consolidated level, GCPL expects mid-single digit INR sales growth, low-teens constant currency sales growth, and mid-single digit reported EBITDA growth for the quarter.
