GCPL takes Rs 2,389 cr one-time hit over Africa market strategy tweak

Godrej Consumer Products (GCPL) reported a Rs 2,389 crore exceptional loss for the quarter ended January-March 2023-24, owing to a change in strategy for its Africa market. In the long run, the company expects the profit after tax (PAT) from this market to improve to Rs 50 crore in the medium term after the completion of its planned restructuring, it mentioned in its investor presentation following the announcement of its October-December quarter results.In its presentation uploaded on exchanges on Tuesday, the company said that it had positive cash flow due to the East Africa reorganisation.It also said that its rest of the world business (excluding India and Indonesia) expects volume growth in the medium term to be in mid-single digits and expects its earnings before interest, tax, depreciation, and amortisation margins to exceed 15 per cent.GCPL reported that it completed the reorganisation of its Africa business in the January-March quarter and exited the East Africa market during that period. Due to the restructuring exercise, the company reported an impairment loss of Rs 1,390.8 crore, attributed to its brand and goodwill for Africa, which included its brand Strength of Nature.