Godrej Consumer Product Limited Q3 profits jump to Rs.18.5 Crore.
(Mumbai, 28th January 2002)
Godrej Consumer Products Limited (GCPL) has registered a profit (PBT) of Rs.18.5 crore in its Third Quarter ended 31st December 2001. Gross Profit (PBIDT) for the quarter is Rs.21.9 crore. The PBT for the nine month period ended 31st December 2001 stands at Rs. 48.0 crore. PAT for the quarter ended 31 st December 2001 is Rs.12.3 crore and for the nine months ended 31 st December 2001 is Rs.32.1 crore.
Despite the slowdown in the industry, the sales turnover of the Company's Brands for the nine month period ended 31st December 2001 grew by 10% to Rs.333.0 crore as against Rs.302.6 crore (Sales of the Company's Brands of the Consumer Products Division of the former Godrej Soaps Limited) for the same period last year.
The sales turnover, for the Quarter grew by 2% to Rs.126.0 crore as against Rs.123.2 crore (Sales of the Company's Brands of the Consumer Products Division of the former Godrej Soaps Limited) for the same period last year.
Other Operating Income for the nine months ended 31st December, 2001 includes Rs. 10.7 crore (Rs.4.7 crore for the quarter ended 31st December, 2001) on account of sale of byproducts and Rs. 5.1 crore (Rs.1.5 crore for the quarter ended 31st December, 2001) on account of processing charges for Contract Manufacturing. Contract Manufacturing business contributed Rs. 46.3 crore to sales during the nine month period ended 31st December 2001.
The Company achieved an EVA of Rs. 8.4 crore during the quarter ended 31st December 2001 while the EVA was Rs. 22.1 crore for the nine month period ended 31st December 2001.
Announcing the results, Mr. Adi Godrej, Chairman said, "Focus on key brands, increased efficiencies of sales & distribution and better capital management have contributed to the growth in profits. All this has helped in meeting the EVA targets and ensuring that shareholder wealth continues to grow.
New innovative products and smart marketing are key areas which we are looking at for future growth."
While the overall toilet soaps business was affected by the slowdown in the category, GCPL brands such as Cinthol, Godrej Fairglow and Godrej No.1 showed growth with market share increasing to 5.9% in December 2001. The Company's Hair Colour products continued to grow ahead of the industry at 16% with Godrej Powder Hair Dye sachet helping GCPL to increase rural market penetration with more than 1.1 million outlets selling the product. Colour Soft Liquid Hair Colour range became the market leader in the premium hair colour segment surpassing L'Oreal's Excellence hair colour at 31% volume market share while the nearest competition is at 29%.
Godrej continued to maintain its stronghold on the liquid detergent market with Godrej Ezee being relaunched with added benefit of Fabric Conditioner, which makes woollens soft & fluffy. The Company also launched a website for the brand called www.ezeefabcare.com which will help in building a web based community for the brand.
With focus on the Personal, Hair and Fabric Care market categories, GCPL is looking at launching several new products to help drive top-line growth.
Highlight of the quarter was maiden export to the US market, Ethiopia and Suriname. The Exports division now sells to 36 countries across the globe.
The Company has announced a scheme for buy-back of equity shares of the Company from the open market to purchase its fully paid up equity shares of Rs.4/- each at market price,(not exceeding Rs.100/- per share) for an aggregate amount not exceeding Rs 9.3 crore.
GCPL is a result of the demerger of the Consumer Products Division of the former Godrej Soaps Limited. With effect from April 2, 2001, Godrej Soaps Limited has been renamed as Godrej Industries Limited. GCPL is listed on the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), and Stock Exchanges at Chennai, Kolkata, Delhi and Ahmedabad.