Godrej Consumer declares dividend of ₹10 per share, exceptional charge leads to net loss

"Our consolidated reported numbers stand strong at 12% underlying volume growth, 6% sales growth (30% constant currency sales growth), 18% EBITDA growth and 22% PAT (before exceptions and one-offs) growth. We have taken an exceptional charge of ₹2,378 crore on our GAUM (Godrej Africa, US, and Middle East) business. Hence, our reported PAT is negative ₹1,893 crore," the company said.

The company's revenue from operations increased 5.8% to ₹3,385.6 crore against ₹3,200 crore in the corresponding period of the preceding fiscal. CNBC-TV18 poll had predicted revenue of ₹3,327 crore for the quarter under review.

Also Read: Gujarat Gas declares dividend of ₹5.66 per share as Q4 numbers beat estimates

At the operating level, EBITDA rose 17.9% to ₹755.7 crore in the fourth quarter of this fiscal over ₹640.9 crore in the corresponding period in the previous fiscal. CNBC-TV18 poll had predicted an EBITDA of ₹731 crore for the quarter under review.

The EBITDA margin stood at 22.3% in the reporting quarter compared to 20% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. CNBC-TV18 poll had predicted a margin of 22% for the quarter under review.

The board has declared an interim dividend of ₹10 per share (1000% on shares of face value of ₹1 each) for the financial year 2024-25. The record date for ascertaining the names of the shareholders who will receive the dividend is Tuesday, May 14. The dividend will be paid on or before Wednesday, June 5, 2024.

Further, the company's organic consolidated volume growth has been 9% and organic sales growth has been 4% (28% constant currency sales growth). Sales growth is lagging behind volume growth due to currency fluctuations in Africa and low soap prices in India.

Also Read: Route Mobile Q4 Results | Net profit dips 9%, declares dividend of ₹2 per share

India volume growth was 15% and sales growth was 12% and EBITDA growth was 12%. The organic volume growth was 7%, while the organic sales growth was 5%. The household insecticides category had a poor quarter due to an extended winter up north and parts of the east, it said.

However, Godrej Consumer Products' performance was driven by high single-digit volume growth in personal wash and double-digit volume growth in hair colors, air fresheners, fabric care, etc. The incense sticks launch has been extremely encouraging so far. RCCL did a strong ₹137 crore in a seasonally weak quarter and grew at 22% year-on-year.

Indonesia had a very strong quarter with volume growth of 12% and EBITDA growth of 34%. This has been driven by continuing good performance on household insecticides but also a benefit of the Lebaran (official Islamic holiday) season shifting to Q4. GAUM organic volumes grew by 10% while reported volumes grew by 2%, and EBITDA grew by 60%. The company has now completed the reorganisation of our business in East Africa.

Godrej Consumer Products said there will be a positive impact on PAT of ₹50 crore per annum despite the negative impact on revenue of ₹470 crore per annum. It has taken an exceptional accounting charge of ₹2,378 crore in its consolidated P&L statement. The impact of this charge is cash positive (NPV of ₹200 crore).

Also Read: GHCL declares dividend of ₹12, net profit slides 50% in Q4

The results came after the close of the market hours. Shares of Godrej Consumer Products Ltd ended at ₹1,250.75, down by ₹0.80, or 0.064%, on the BSE.