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Home >Companies >Company Results >Godrej Consumer’s third quarter net profit jumps 13% to 502 crore

NEW DELHI : Godrej Consumer Products Ltd (GCPL) on Monday reported a 12.77% jump in the December quarter net profit at 502.08 crore, saying demand for hair colours and soaps revived as lockdown restrictions eased.

Revenue from operations for the quarter stood at 3,055.42 crore up 9.9% from the 2,778 crore it reported in a year ago, the maker of Cinthol soaps and Good Knight mosquito repellent said.

Domestic sales were up 11% during the quarter at 1,658 crore, while volumes grew by 7%, the company said in a filing to the exchanges.

In India, soaps reported a second consecutive quarter of double-digit sales growth of 15% and the company continued to gain market share. “Our new launches in health are scaling up well. We continue to focus on micro- marketing initiatives to fuel growth," the company said in a statement to the press. The company said its hair colours business in the local market sold under Godrej Expert recorded a sharp recovery with growth of 14%, driven by an uptick in overall category growth.

The category was largely hit in the first two quarters as consumers stayed indoors and avoided most discretionary personal care purchases. This trend subsequently reversed as movement stabilized and festivities prompted consumers to buy hair care products. “We continued to gain market share. Godrej Expert Rich Crème continues to perform well by leveraging do-it-yourself (DIY) trends and key influencer partnerships," the company said. Godrej’s household insect repellents business grew by 7%. “We delivered strong growth in aerosols, electric formats and non-mosquito portfolio, but a soft performance in burning formats and personal repellents. Our focus is to drive premiumization and innovation with the launch of Good knight Gold Flash, Good knight Smart Spray and Good knight Natural Neem products," the company said.

Godrej capitalized on the high demand for hygiene products with over 10 new launches in July 2020. It expanded its Protekt brand to home, kitchen and personal care products, including dishwasher liquid, surface disinfectant spray, fruit-and- vegetable wash, soaps, masks, and surface and skin anti-bacterial wipes.

Sales in Africa, the US and West Asia grew 17% in constant currency terms to touch 779 crore during the quarter. Sales in Indonesia remained flat at 447 crore.

“Across channels too, we are making a shift, doubling down on digitisation and channels like e-commerce and chemists. We are also strengthening our supply chain operations and distribution capabilities," said Nisaba Godrej, chairperson and managing director, GCPL said.

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