Fast-Moving Consumer Goods (FMCG) maker Godrej Consumer Products stated that the domestic market remained soft during the quarter with high-single-digit organic volume and mid-single-digit value growth. During the quarter, the growth was reported in double-digit in volume and high-single digit in value terms.
Godrej Consumer Products stated that at a Consolidated level (organic) they expect flattish INR sales, double-digit constant currency sales growth and double-digit EBITDA (reported) growth.
“The growth was broad-based across both Home Care and Personal Care. Demand for Household Insecticides had been soft for earlier parts of the quarter due to extreme heatwaves across the country. Park Avenue and KamaSutra brands are performing well post-portfolio simplification actions and are in line with our full-year growth ambition,” said Godrej Consumer Products in an exchange filing.
Indonesia business
Meanwhile, the Indonesia business delivered a strong performance with high-single-digit volume growth and double-digit constant currency sales growth.
“The Indonesian currency has seen high depreciation leading to lower growth in INR terms. The GAUM (Godrej Africa, USA, and Middle East) organic business is expected to see a double-digit volume decline largely led by West Africa due to a high base in Q1 FY24 on account of the 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. Despite this, we have grown EBITDA (reported) in INR terms in strong double digits,” informed the company.