Consolidated EBITDA de-grew by 13% YoY while consolidated EBITDA margins decreased by 420 bps 17.2% in the first quarter.

During the quarter, the India business sales grew by 12% to Rs 1,814 crore but volume declined by 6%. While the Home Care category recorded a decline of 4%, Personal Care category reported a growth of 25%. EBITDA declined by 4% to Rs 408 crore in Q1 FY23.

Meanwhile, Indonesia business delivered a weak performance with a sales decline of 12% in constant currency terms. Sales excluding Hygiene (Saniter) saw a decline of 4% in constant currency terms. EBITDA margins, contracted by 810 bps year-on-year due to higher commodity inflation, upfront marketing investments, high hygiene comparator, and scale deleverage.

The company's Africa, USA and Middle East cluster delivered double-digit sales growth of 12% in constant currency terms. EBITDA margins contracted by 160 bps year-on-year during the period under review.

Sudhir Sitapati, managing director and CEO, GCPL, said: “We delivered a steady performance in 1Q FY 2023. Overall sales grew by 8% with 3-year CAGR in double digits. However, this growth was driven by pricing. We continue to believe that with the relatively non-discretionary, mass pricing of our portfolio and very good performance on market shares, volume growth will return in the medium term.

Our overall EBITDA declined by 13% (without one-offs) driven by unprecedented global commodity inflation, upfront marketing investments and a weak performance in our Indonesia and Latin America & SAARC businesses.

With inflationary pressures abating, we expect recovery in consumption and gross margins alongside continued higher marketing investments with a significant focus on reducing controllable costs. We continue to have a healthy balance sheet and our net debt to equity ratio continues to drop.”

Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colorants, toiletries and liquid detergents.

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