Godrej Consumer net up 12% to Rs 31 cr
Robust growth trends in the FMCG sector saw personal care major, Godrej Consumer Products (GCPL) reporting a 12.4% jump in its net profit for the quarter ending June ’06 at Rs 30.5 crore and a 14% jump in its sales at Rs 192 crore, reports Our Bur...
By TNN |
MUMBAI: Robust growth trends in the FMCG sector saw personal care major, Godrej Consumer Products (GCPL) reporting a 12.4% jump in its net profit for the quarter ending June ’06 at Rs 30.5 crore and a 14% jump in its sales at Rs 192 crore, reports Our Bureau in Mumbai.
However, higher advertising and promotional (A&P) spends to support new launches and acquisitions impacted the company’s profit margins during the quarter. The board of directors reported an interim dividend of 75%. The stock was quoted at Rs 649 today, down by 2.7%.
GCPL’s consolidated sales stood at Rs 237.6 crore while net profit was Rs 34.14 crore. During the quarter, sales of Godrej brand of soaps grew 21% in value terms while the profit before income and tax (PBIT) declined to 12.8% from 13.3% in the previous corresponding period.
“Our profitability continues to be strong despite a significant increase in investments in advertising and promotional activity and global acquisitions” said Adi B Godrej, chairman and managing director, The company is also eyeing acquisitions in China. Latin America, Africa and Asia, said Mr Godrej at an AGM in Mumbai on Thursday.
The company spent a total of Rs 160 crore for both the acquisitions of Keyline Brands and Rapidol. Higher input costs especially that of vegetable oils impacted its raw material costs which rose by 29% to Rs 94 crore during the quarter. The toiletries business has contributed higher profit margins to the company’s overall profitability.
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Its soaps business grew by 13.8% to Rs 129.53 crore while toiletries grew by 15% to Rs 62.1 crore. PBIT of the soaps division grew by 9% to Rs 16.56 crore while that of toiletries was 14% higher at Rs 24.04 crore. The hair colorant business grew by 10% in value terms while sales of toiletries grew by 41%, especially in categories like talcum powder, shaving cream and diapers. Start a SIP with as low as ₹500 with ET Money App!
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