While in Indonesia, which is GCPL’s second largest market, its business continues to deliver strong performance with high-single digit volume growth and double-digit constant currency sales growth
New Delhi: Operating conditions in India continued to remain soft in the June quarter though its domestic business performed well with “high-single-digit organic volume and mid-single digit value growth”, said Godrej Consumer Products Ltd. (GCPL).
The reported growth will be double-digit in volume and high-single digit in value terms, said GCPL in its latest quarter updates.
“The growth was broad-based across both Home Care and Personal Care,” the Godrej Group FMCG arm said in a regulatory update.
However, on a consolidated basis, GCPL “expects flattish INR sales, double-digit constant currency sales growth and double-digit EBITDA (reported) growth”.
This is largely due to GAUM (Godrej Africa, USA, and the Middle East), where organic business is expected to see a “double-digit volume decline” largely led by West Africa.
In the domestic market, demand in Household Insecticides, in which the company operates with brands as HITS and Good Knight, had been soft for earlier parts of the quarter. This was “ due to extreme heatwaves across the country,” it said.
While Park Avenue and KamaSutra brands are performing well post-portfolio simplification actions and are in line with our full-year growth ambition.
GCPL acquired both brands in April last year from Singhnia family-promoted Raymond.
While in Indonesia, which is GCPL’s second largest market, its business continues ‘to consistently deliver strong performance with high-single digit volume growth and double-digit constant currency sales growth”.
However, the Indonesian currency has seen high depreciation leading to lower growth in INR terms, it added.
However, its GAUM (Godrej Africa, USA, and Middle East) organic business is expected to see “double-digit volume decline” largely led by West Africa due to a high base in Q1 FY24 on account of appointment of a National Distributor giving a one-time sell-in benefit and some tough pricing decisions in Nigeria.
“There has been an additional impact driven by supply disruption in South Africa led by the shipping crisis. As shared earlier, the currency in Nigeria continues to negatively impact our INR sales performance,” it said.
According to GCPL, this update provides an overall summary of the operating performance and demand trends during the quarter ended June 30, 2024.
“This will be followed by a detailed performance update, post the approval of the Q1 FY25 financial results by the Board of Directors,” it said.
