Beating market expectations, fast-moving consumer goods (FMCG) player Godrej Consumer Products (GCPL) registered a consolidated net profit increase of 78 per cent for the quarter ended June 30, 2009, to Rs 70 crore, compared with Rs 39 crore in the corresponding quarter of the previous financial year.
The company, which has a significant presence in the personal & household care segment, saw its revenue for the first quarter increasing by 21 per cent to Rs 439 crore, compared with Rs 362 crore in the corresponding quarter of the last year.
“The company recorded a growth of 14 per cent in volumes and 7 per cent price growth during the quarter,” Chairman Adi Godrej said. “The good performance during the quarter was also on account of reduced input costs and a conscious effort by the company to reduce its operation costs. As a result, the company’s operating margins expanded by 600 basis points,” he added.
As for the sequential growth (compared to the trailing quarter), Godrej’s net profit increased by 2 per cent, while its revenue increased by 28 per cent. On a standalone basis, the company posted a net profit of Rs 60 crore during the June quarter, up 75 per cent from Rs 34 crore in the same quarter ended June 2008. Total income for the quarter ended June 2009 increased by 22 per cent at Rs 350 crore as against Rs 287 crore in the corresponding quarter last year.
Godrej to buy out Sara Lee's stake
GCPL is looking to acquire control of its FMCG joint venture with US-based Sara Lee Corp that manufactures insect repellents, among other things. Godrej Sara Lee is the joint venture between Sara Lee and Godrej. The US firm holds 51 per cent stake in the JV, while Mumbai-based Godrej group has the remaining 49 per cent. "There is a possibility of us buying out 51 per cent share of Sara Lee under the right circumstances and conditions," Adi Godrej said today.
