Home Business News Godrej Group reports slower EBITDA growth for second quarter of FY25 amid rising palm oil costs
Since March, palm oil prices have surged significantly. As a result, Godrej’s management has chosen not to pass on the entire cost increase to consumers immediately, opting instead to prioritise long-term initiatives like its rural van program and the development of new product categories.
By CNBCTV18.com October 8, 2024, 12:02:30 AM IST (Published)
The Godrej Group has reported slower growth in its consolidated EBITDA for the second quarter of FY25, citing challenging conditions in the Indian market. According to a filing on Monday, October 7, rising palm oil costs and competitive pressures have squeezed margins, prompting the company to lower its growth forecasts.
Since March, palm oil prices have surged significantly. As a result, Godrej’s management has chosen not to pass on the entire cost increase to consumers immediately, opting instead to prioritise long-term initiatives like its rural van program and the development of new product categories.
While Standalone EBITDA growth is expected to remain flat, the Standalone business should still achieve high single-digit growth in both sales volume and value. This update, covering the quarter ending September 30, 2024, was issued ahead of detailed financial results, which are pending approval by the Board of Directors.
Despite the challenges, Godrej remains committed to achieving high single-digit volume growth in its Standalone and Indonesia operations, alongside mid-teens growth in consolidated EBITDA for FY25. Internationally, the Indonesia segment is expected to deliver high single-digit volume growth and double-digit sales growth in local currency.
However, the Godrej Africa, USA, and Middle East (GAUM) business may experience a slight decline in volume due to inventory adjustments, although demand remains strong.
https://www.cnbctv18.com/business/godrej-group-reports-slower-ebitda-growth-for-second-quarter-of-fy25-amid-rising-palm-oil-costs-19488841.htm
