Nigeria profitability guidance intact
Management expects to pass on cost increases from naira devaluation (NGN 650 to 750) to consumers, keeping EBITDA plus Forex loss line intact.
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Godrej Consumer Products · forward-looking guidance across the available source record.
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Raymond portfolio: high single-digit EBITDA margin for FY24
Management reiterated ambition of high single-digit EBITDA margin for the Raymond portfolio on a full-year basis, with improvements from Q2 onwards.
INR 900 crore organic CapEx in India over 18-36 months
Planned investment of INR 900 crore in organic manufacturing CapEx in India for volume growth and logistics, with ~INR 300 crore per year.
Raymond portfolio: flat net sales YoY for FY24
Management maintained guidance of flat net sales year-on-year for the Raymond portfolio, despite downstocking and returns in Q1.
India pricing to turn positive from Q2 FY25
Management expects pricing to become positive sequentially from Q2, with full-year pricing growth of 2-3%.
India volume growth target of low double-digit for FY25
Management aims for low double-digit volume growth in India for the full year, implying acceleration from 8% in Q1.
Raymond business EBITDA to be 15-20% below target of INR 160 crore
Raymond acquisition EBITDA for FY25 is expected to be 15-20% below the original target of INR 160 crore, but significantly higher than the inherited INR 60 crore.
Pet care subsidiary to be cash positive in five years
Godrej Pet Care is expected to become cash positive after five years, with manufacturing commencing in H2 FY26.
Standalone EBITDA margins below normative in H1, improving in H2
H1 FY26 standalone EBITDA margins will be below normative range, but expected to improve in H2 as palm oil benefits and cost savings kick in.
Full-year consolidated revenue growth: high single-digit
Management expects high single-digit consolidated INR revenue growth for FY26.
Full-year consolidated EBITDA growth: double-digit
Management expects double-digit consolidated EBITDA growth for FY26.
Standalone EVG: mid-to-high single digit for FY26
Underlying volume growth for standalone business expected to be mid-to-high single digit for the full year.
Full-year guidance on track for organic and acquired businesses
Management expects to achieve the annual guidance for both organic and acquired businesses, with phasing more favorable to Q4 than Q3.
Steady improvement in EBITDA margins
EBITDA margin of 20% is expected to improve steadily through structural cost reduction actions, particularly from Indonesia and GAUM.
Africa restructuring to add ~INR 50 crore profit in FY25
Reorganizing East African hair fashion to an asset-light royalty model will eliminate ~INR 500 crore revenue but add ~INR 50 crore profit in FY25.
Dividend payout ratio ~50% of annual PAT
Board approved INR 5 per share dividend; management targets average payout ratio of about 50% of annual profit after tax.
India EBITDA margin to remain in 24-25% range for next two quarters
Management expects India standalone EBITDA margins to stay between 24% and 25% due to volatile palm oil prices, with no plans to cut media investments.
RCCL EBITDA may fall short of 145-150 crore target
The Raymond consumer portfolio EBITDA may be slightly below the promised 145-150 crore for the year due to distribution missteps in urban general trade.
HI category to aim for high single-digit volume growth
Management targets high single-digit volume growth for household insecticides, driven by RNF molecule rollout and distribution expansion.
Africa margins to improve to high teens over next year or two
Africa EBITDA margins are expected to reach high teens, driven by supply chain efficiencies and stable macro conditions.
High single-digit underlying volume growth in India standalone for FY26
Management expects India standalone business to achieve high single-digit underlying volume growth for the full year, driven by recovery in soaps and continued momentum in non-soap categories.
High single-digit consolidated revenue growth for FY26
Management reiterated confidence in achieving high single-digit revenue growth at consolidated level for the full year.
India standalone EBITDA margins to return to normative 24-26% in H2
Management expects India margins to return to normative levels (24-26%) in the second half of FY26, albeit at the lower end of the band.
Double-digit EBITDA growth for India and GAUM businesses for FY26
India standalone and GAUM businesses are expected to deliver double-digit EBITDA growth for the full year.
EBITDA margin steady improvement
Management anticipates steady improvement in EBITDA margins through structural cost reduction actions.
Household insecticide volume growth of 8-9%
Rightful volume growth in household insecticide is about 1.2x GDP, implying 8-9% volume growth.
Air freshener growth in high teens to early 20s
Air freshener category should grow in high teens to early 20s for some years to come.
India volume and value growth sequential improvement in Q4 FY25
Management expects volume and value growth to improve sequentially in Q4 FY25, with a return to H1-like levels by Q1 FY26.
India EBITDA margin target of 24-26%
Management targets India EBITDA margins in the 24-26% range, expecting to reach this level in the next 6-8 months.
Africa organic revenue growth positive by Q4 FY25
Management expects Africa business to report positive organic revenue growth by Q4 FY25.
Further pricing actions in soaps
Management indicated need for one or two more rounds of pricing in soaps to restore normative margins.
India volume growth to gradually inch up from 6-7% to 7-8% over 18-24 months
Management expects sequential gains in India volume growth driven by compounding effect of fast-growing categories like hair care, laundry liquid, and incense sticks.
India EBITDA margins to sustain in 24-26% range annually
Management expects India EBITDA margins to remain within the 24-26% range on an annual basis, with quarterly fluctuations.
GAUM to deliver double-digit revenue and profit growth for FY26
Management reiterated guidance for GAUM to achieve double-digit revenue and profit growth for the full year.
Indonesia recovery to start meaningfully from FY27
Management expects Indonesia business to recover meaningfully from FY27 as market conditions normalize.
Near-term margin pressure from crude inflation
Management expects EBITDA margin pressure in Q1 and Q2 FY27 due to crude oil at $100-110/bbl, but expects recovery within 3-4 months as pricing actions take effect.
Indonesia mid-single digit volume, high single digit value growth
Indonesia expected to deliver mid-single digit volume growth and high single digit value growth going forward as pricing pressure abates.
Africa double-digit revenue and profit growth over medium term
Africa, US, and Middle East business expected to deliver double-digit revenue and profit growth over the medium term, driven by FMCG investments.
Price hikes implemented in April
Price increases of 5% in soaps, 6-7% in detergents, and 4-5% in household insecticide were implemented in April to offset input cost inflation.