Shares of a leading FMCG firm climbed nearly 7% on Friday, reaching an intraday high of ₹4,424 per share after cigarette volumes grew by 26.2% in Q1 FY25.
At 12:50 p.m., Godfrey Phillips India Ltd shares were trading at ₹4,412.40 per share, up 6.87 percent from the previous close price on the exchange. The company has a market capitalization of ₹22,801 crore.
What Happened:
According to Godfrey Phillips exchange filing, the company’s cigarette volumes surged by 26.2% year-over-year, surpassing ITC’s 2.5% growth and outperforming VST Industries.
In Q1 FY25, the company’s monthly cigarette sales grew to 1,497 million from 1,186 million in Q1 FY24, reflecting a 26.2% increase.
For the quarter, Godfrey Phillips’ international business generated ₹327 crore in revenue, representing 23% of the total revenue. In FY24, the company saw an 11% rise in domestic cigarette volume, reaching 1,295 million per month compared to 1,163 million in FY23.
On August 8th, the company announced a 12% revenue increase to ₹1,171 crore for Q1 FY25, compared to the same quarter last year, although profit declined by 9.8% to ₹229 crore. The gross margin for Q1 FY25 was 16.9%, with a net profit margin of 8.6%.
CEO Sharad Aggarwal highlighted that Godfrey Phillips achieved strong domestic cigarette volume growth in Q1 FY25. The company’s revenue was supported by unmanufactured tobacco exports totaling ₹300 crore in the same quarter, continuing an upward trend.
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About the company:
Godfrey Phillips India is a leading FMCG company known for its iconic cigarette brands such as Four Square, Red & White, and Cavanders. Additionally, the company distributes the renowned Marlboro brand. Looking ahead, Godfrey Phillips plans to explore new markets with fresh offerings in the coming years.
Currently, the company generates 70% of its revenue from the domestic market, 23% from international markets, and 7% from Retail, Confectionery, and Ferrero products.
With a significant presence across Latin America, the Middle East, Southeast Asia, and Eastern Europe, Godfrey Phillips operates in approximately 35 countries.
In May 2024, the company signed a product supply agreement with Ferrero India Private Limited to distribute and resell Ferrero’s packaged food products, including Tic Tac and Kinder Joy.
In the past six months, Godfrey Phillips shares have surged by 85%, and over the past year, they have risen by 101%.
Written by Omkar Chitnis
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