Godrej Consumer Products Faces Profit Decline Amid Palm Oil Price Surge

Godrej Consumer Products Ltd reported a 14.24% decline in profit in Q3 2024 due to demand headwinds and rising palm oil prices. Revenues rose slightly to Rs 3,768.43 crore, but expenses increased significantly. The company plans to focus on driving growth and improving profitability despite these challenges.

Godrej Consumer Products Ltd (GCPL) reported a 14.24% drop in its consolidated profit after tax for the third quarter of 2024, citing demand challenges in India and a surge in palm oil prices as major contributing factors.

Despite a slight increase in revenue to Rs 3,768.43 crore from Rs 3,659.64 crore the previous year, total expenses rose sharply, impacting the company's profitability. Managing Director and CEO Sudhir Sitapati noted that urban consumption slowdown and palm oil price hikes have pressured the company's EBITDA margin, with India sales growing by just 4%.

GCPL is focusing on volume-led growth and profitability improvement, despite external pressures. This includes market share gains in premium formats of household insecticides and steady growth in international markets, such as an 8% sales rise in Indonesia.

(With inputs from agencies.)