Homegrown FMCG major Godrej Consumer Products (GCPL) on Wednesday reported 28.4 per cent year-on-year (yoy) decline in consolidated net profit to Rs 413.88 crore in the second quarter ended September 30, 2019.
"The company had posted a net profit of Rs 577.73 crore in the corresponding period last fiscal," GCPL said in a filing to the Bombay Stock Exchange.
Revenue from operations stood at Rs 2,630.2 crore, down 1.14 per cent as against Rs 2,660.65 crore reported in the year-ago period, GCPL said in the exchange filing.
India business delivered a volume growth of 7 per cent as compared to 5 per cent in June quarter, led by new product launches, effective marketing campaigns and consumer offer. The company expects a gradual recovery in the coming quarters for the FMCG industry and also for our business.
During the quarter under review, EBITDA (Earnings before interest, tax, depreciation and amortisation) jumped 17.5 per cent yoy to Rs 571.9 crore, while EBITDA margin increased by 340 basis points to 21.7 per cent in September quarter.
Commenting on the financial performance of 2Q FY 2020, Nisaba Godrej, Executive Chairperson, GCPL, said: "We delivered a steady performance in the second quarter of fiscal year 2020. Our India business delivered a robust volume growth of 7 per cent, broad based across categories, amidst a general slowdown in staples consumption. We expect a gradual recovery in the coming quarters for the FMCG industry and also for our business."
"In our international businesses, Indonesia continued its strong performance with double digit profitable sales growth driven by a consistent performance across categories and several go- to-market initiatives. Africa had a mixed performance with weak sales growth and strong operating profits expansion. Growth was impacted by adverse macro economic conditions in West Africa. We continue to drive the scale up of the wet hair care business and the relaunch of the Darling brand in the dry hair category, along with expansion in distribution, to deliver profitable sales growth for the full year in Africa," Nisaba said.
Looking forward, the company expects steady volume growth in India in fiscal year 2020, supported by continued focus on innovations and enhancements to go-to-market model. "We will continue to drive profitable sales growth in Indonesia, while focusing on profitability in Africa, and ensuring a meaningful turnaround in our Latin American business," the company said.
Godrej Consumer Products said its board has declared an interim dividend of Rs 2 per share (200 per cent on shares of face value of Rs 1 each) for the financial year 2019-20. The dividend will be paid on November 28, 2019.
Shares of Godrej Consumer Products were trading 2.72 percent higher at Rs 741.50 apiece on the Bombay Stock Exchange.
Edited by Chitranjan Kumar