FMCG major Godrej Consumer Products Ltd has reported a 14.3% year-on-year (YoY) decline in net profit at ₹498.3 crore for the third quarter (October-December) against ₹581.1 crore in the year-ago period.

The company's revenue surged 3% to ₹3,768.4 crore against ₹3,659.6 crore in the year-ago period, while the Q3 FY 2025 consolidated organic sales grew by 6% year-on-year. GCPL Q3 FY 2025 consolidated EBITDA margin came in at 20.2%.

Godrej Consumer's standalone business sales grew 4% and volumes were flat year-on-year. Indonesia volumes grew by 6% and sales grew by 9% in INR terms, year-on-year. Africa, USA and Middle East (organic) sales declined by 8% in INR terms and grew by 1% in constant currency terms, year-on-year, while Latin America and others sales grew by 165% in INR terms and 28% in constant currency terms, year-on-year.

Sudhir Sitapati, MD and CEO, GCPL, says demand conditions in India have witnessed temporary headwinds over the past few months, led by a slowdown in urban consumption. He adds that a surge in palm oil prices by more than 40%, along with weak seasonality in household insecticides has led to a flat underlying volume growth and mid-single-digit underlying sales growth for its standalone business.

"The surge in palm oil costs is negatively impacting our EBITDA margin. Our reported Standalone EBITDA margin of 22.6% is lower than our normative margin. Our categories of Air Fresheners, Laundry Liquids, etc. have continued to deliver strong double-digit underlying volume growth."

The company says in Indonesia, it continues to deliver healthy performance, with 6% volume growth and EBITDA margin expansion. "We remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability. We continue to have a strong balance sheet. We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development," says Godrej Consumer.

Godrej Consumer's board has declared an interim dividend of ₹5 per share (500% on equity shares of face value of Re. 1/- each) for the financial year 2024-25. The record date for ascertaining the names of the shareholders, who will be entitled to receive the said dividend is Monday, February 3, 2025. The dividend will be paid on or before Sunday, February 23, 2025.

The shares of Godrej Consumer closed 1.28% down at ₹1,129.90 on the BSE on Friday.