GCPL 3Q FY 2018 results

30 January 2018

Godrej Consumer Products Limited (GCPL), a leading emerging markets FMCG company, today announced its financial results for the quarter ended December 31, 2017.



  • 3Q FY 2018 consolidated constant currency sales increased by 11%* year-on-year
    - India business sales growth of 17%* year-on-year, led by 18% volume growth
    - International business sales growth of 5% year-on-year, on a constant currency basis
  • 3Q FY 2018 consolidated constant currency EBITDA increased by 18%
  • 3Q FY 2018 consolidated net profit and EPS (without exceptional items) increased by 21%
  • The board has declared an interim dividend of 100% (INR 1.00 per share)

*Comparable growth assuming GST in the base quarter sales



Commenting on the financial performance of 3Q FY2018, Ms. Nisaba Godrej, Executive Chairperson, GCPL, said:

"During the third quarter of fiscal year 2018, we have delivered competitive and profitable growth, while continuing to make healthy investments in our brands. Our consolidated comparable sales increased by 11% while EBITDA growth was stronger at 18%, in constant currency terms. Our Advertising & Publicity (A&P) spends increased by 18%. We believe these investments will strengthen our brands and also set us up well to accelerate growth in the quarters ahead.

Our India business performance was resilient with 17% comparable sales growth, driven by 18% volume growth. We continued to grow EBITDA ahead of sales, with a growth of 32%. The performance in our international portfolio was relatively muted due to a challenging environment. However, we expect the environment to improve in the quarters ahead.

Going forward, we expect stronger consumer demand in India. We also remain very positive about the future growth prospects of our international portfolio. As the market conditions improve, we will increase the pace of new product launches to build on the growth momentum. We will also continue to invest in building a sustainable platform for the future.

Overall, we are relentlessly focused on becoming more agile, increasing the pace of innovations, enhancing our go-to-market approach and investing in our key talent, to continue to outperform the market and deliver industry-leading returns."



Performance Highlights

  • 3Q FY 2018 India sales increased by 17%* to INR 1,395 crore
  • 3Q FY 2018 Adjusted EBITDA increased by 32% to INR 390 crore
  • 3Q FY 2018 net profit increased by 29% to INR 299 crore


Category Review

Household Insecticides
Household Insecticides had a relatively muted quarter with a sales growth of 5%*. Growth was impacted by lower offtakes driven by adverse weather conditions in select parts of the country. We continued to make competitive brand investments for the future. Our recent launch in Personal Repellents is scaling up well with double-digit market share. We remain focused on innovating to drive ahead of category growth.

Soaps continued its strong momentum and delivered a robust growth of 24%*. This was led by strong double-digit volume growth. This strong growth has been driven by effective micro-marketing initiatives, variants-led strategy and strong on-ground execution, supported by healthy brand investments. We have also continued to gain market share during the quarter.

Hair Colours
Hair Colours delivered a strong double-digit growth in the crème and powder hair colour formats. Our sales growth of 33%* was driven by volume growth. The prices of Godrej Expert Rich Crème and Expert Original powder were reduced to pass on the GST rate cut benefits. Powder hair colours saw a strong pick-up post the GST led price cut. Godrej Expert Rich Crème continues to gain market share and extend its leadership position.

Liquid Detergents
Our liquid detergents portfolio saw a strong growth of 21%*, led by Ezee. This growth was due to double-digit volume growth. Price reduced to pass on the GST rate cut benefits.

Air Fresheners
Godrej aer continues to maintain leadership position in the overall Air Care market and gain share, aided by innovations and strong execution.



Our Indonesia business sustained robust margin expansion, during an ongoing recovery in sales. The constant currency sales decline stemmed to 2% from 7% in 2Q and 11% in 1Q. Our adjusted EBITDA margin increased by 230 bps due to rationalised A&SP investments, Project PI (cost savings initiative) and stringent controls on overheads. The recently launched Hit Expert Aerosol is also receiving encouraging traction. During the quarter, we launched Hit One Push with an aerospray technology (sprayer with 45° facing up) and active micro-particles that spread fast and evenly in rooms.

Africa, USA and Middle East
Our Africa, USA and Middle East business continued to deliver double-digit growth with a constant currency sales growth of 10%. Sales in the quarter was impacted to some extent by the ERP implementation in the USA and election related disruption in Kenya. Hair extensions continue to deliver double-digit growth, in constant currency terms. Our adjusted EBITDA margin declined by 320 bps year-on-year due to upfront A&P investments in scaling up our wet hair care portfolio and scale de-leverage.

Latin America
Performance in our Latin America business was muted, with a constant currency sales growth of 5%. This growth was impacted by tough market conditions and macro challenges in Argentina. Our adjusted EBITDA margin decreased by 30 bps year-on-year.

Our Europe business delivered healthy sales and earnings growth. Constant currency sales increased by 9%, led by strong performance in own brands. Adjusted EBITDA margin increased by 70 bps year-on-year, driven by favourable category mix.

Note: The figures for the current quarter may not be comparable with those of the corresponding quarter of the previous year, because of the acquisitions made since then.


Godrej Consumer Products is a leading emerging markets company. As part of the over 120-year young Godrej Group, we are fortunate to have a proud legacy built on the strong values of trust, integrity and respect for others. At the same time, we are growing fast and have exciting, ambitious aspirations.

Today, our Group enjoys the patronage of 1.15 billion consumers globally, across different businesses. In line with our 3 by 3 approach to international expansion at Godrej Consumer Products, we are building a presence in 3 emerging markets (Asia, Africa, Latin America) across 3 categories (home care, personal care, hair care). We rank among the largest household insecticide and hair care players in emerging markets. In household insecticides, we are the leader in India and Indonesia and are expanding our footprint in Africa. We are the leader in serving the hair care needs of women of African descent, the number one player in hair colour in India and Sub-Saharan Africa, and among the leading players in Latin America. We rank number two in soaps in India, are the number one player in air fresheners in India and Indonesia, and a leader in wet tissues in Indonesia.

But for us, it is very important that besides our strong financial performance and innovative, much-loved products, we remain a good company. Approximately 23 per cent of the promoter holding in the Godrej Group is held in trusts that invest in the environment, health and education. We are also bringing together our passion and purpose to make a difference through our 'Good & Green' approach to create a more inclusive and greener India.

At the heart of all of this, is our talented team. We take much pride in fostering an inspiring workplace, with an agile and high-performance culture. We are also deeply committed to recognising and valuing diversity across our teams.

For further information, please contact:
V Srinivasan
Email: v.srinivasan@godrejcp.com
Tel: +91 22 2519 4316

Sameer Shah
Email: sa.shah@godrejcp.com
Tel: +91 22 2519 4467

Tapan Joshi
Email: tapan.joshi@godrejcp.com
Tel: +91 22 2519 5433

The financials disclosed above may differ from the reported financials to reflect the real business financial performance. Some of the statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations.