Godrej Consumer Products Q1 sales up 9%

New Delhi: Godrej Consumer Products Ltd (GCPL) continues on its growth trajectory, bucking the fast-moving consumer goods (FMCG) sector slowdown. It has registered a profit before tax of Rs 18.2 crore (up 32 per cent) and a gross profit before interest, depreciation and taxes of Rs 21.2 crore (up 20 per cent) during the first quarter ended 30 June 2002.

Profit after tax for the period stood at Rs 12.8 crore (up 39 per cent). The sales (net of excise) of Godrej brands grew by 9 per cent to Rs 104.2 crore as against Rs 95.4 crore for the corresponding quarter last year.

The company has achieved an economic value added of Rs 9.7 crore for the quarter ended 30 June 2002 as against Rs 6.5 crore for the corresponding quarter last year, an increase of 49 per cent.

Says GCPL chairman Adi Godrej: “The company continues to maintain its growth and profitability despite the sluggish market conditions, thereby consistently providing value to its shareholders. In keeping with our philosophy of rewarding shareholders we have declared an interim dividend for the year 2002-03 of Rs 2 per share (50 per cent).“

“Our continued focus on the power brands, new product launches and brand-building initiatives, coupled with greater efficiencies in our sales and distribution network has resulted in impressive returns,“ he adds.

The board of directors has decided not to proceed with the buyback by approval of the shareholders through postal ballot, which was announced in the earlier board meeting on 29 April 2002. The board of directors has also approved a proposal for the buyback of the equity shares under the authority of the board through the open market, subject to a maximum of Rs 175 per share and a maximum outlay of Rs 4.6 crore.

During the quarter ended 30 June 2002, GCPL sales grew ahead of the industry growth. GCPL's brands of toilet soaps grew 11 per cent, far ahead of the industry, which had a negative growth. Godrej No 1, which grew 69 per cent, was the main contributor to GCPL's growth. Godrej FairGlow was relaunched with an improved product blend and new packaging. Cinthol successfully used various trade promotion schemes to stimulate sales in a de-growing market.

GCPL hair-colour brands grew by 11 per cent this quarter. Godrej ColourSoft was relaunched with three new fashion shades: copper brown, burgundy and dark mahogany. Godrej also entered the primarily unbranded mehndi powder market with Godrej Nupur, a 100-per cent natural mehndi.

Exports during the quarter ended 30 June 2002 registered a growth of 77 per cent at Rs 2.3 crore, up from Rs 1.3 crore for the same period last year. Godrej FairGlow, Godrej ColourGloss shampoo, Godrej ColourSoft hair colours and Godrej Nupur mehndi will be the focus in the export markets. Southeast Asia and the African region continue to be the major export markets for the company.

Godrej Consumer Products is a major player in the Indian FMCG market with presence in the personal, hair, household and fabric care categories. It has leading brands such as Cinthol, Godrej Fairglow, Godrej No 1, and Shikakai range of soaps, Godrej Fairglow Fairness Cream, Godrej Shaving Cream and Godrej Hair Dyes, Godrej Coloursoft Hair Colours, Godrej Colourgloss Shampoo, Godrej Nupur Natural Mehndi, and Ezee Liquid Detergent.

With a turnover of Rs 514 crore, the company employs about 900 persons and has three modern manufacturing facilities at Malanpur (Madhya Pradesh), Guwahati (Assam) and Silvassa (Dadra and Nagar Haveli). Associate companies include Godrej Industries Ltd, Godrej Sara Lee Ltd, Godrej Agrovet Ltd and Godrej Properties and Investments Ltd.

GCPL is listed on Bombay, National, Chennai, Kolkata, Delhi and Ahmedabad stock exchanges.