Godrej Consumer Q1 net profit gain

MUMBAI: Personal care products maker Godrej Consumer Ltd posted 94 percent jump in April-June net profit, driven by a one-time gain, several acquisitions in the past year and steady volume growth that underpinned sales.

The firm saw consolidated net profit rise to 2.39 billion rupees, higher than a forecast of 1.27 billion rupees in a Reuters poll of brokerages.

Net sales jumped 40 percent to 9.98 billion rupees.

"The results were boosted by a one-time gain and our strong international operations," Chairman Adi Godrej told Reuters on Saturday.

Godrej Consumer received 1.78 billion rupees from Sara Lee Corporation, after the latter sold the licence to sell the Kiwi brand of shoe polish the product to SC Johnson. Godrej Consumer and Sara Lee had an Indian joint venture which the Indian firm brought out last year.

The Indian firm posted exceptional items of 1.75 billion rupees in this quarter versus 403 million rupees in the same period a year ago.

Its international operations grew 93 percent contributing 36 percent of total revenues.

In the past four years, Godrej Consumer has made three acquisitions in Africa, and five more across various continents in the last financial year.

Godrej acquired Africa's hair care firm Darling Group in June this year and said said it expected revenues of 2-2.5 billion rupees in this fiscal year from the acquisition, starting in the second quarter.

Copyright Reuters, 2011