New Delhi: Operating conditions in India continued to be weak in the June quarter, although its domestic business performed well with "high-single-digit organic volume and mid-single-digit value growth," Godrej Consumer Products Ltd said. (GCPL).
The reported growth will be double digit in volume and single digit in value terms, GCPL said in its latest quarterly updates.
"Growth was broad in both home care and personal care," Godrej Group's consumer goods division said in a regulatory update.
However, on a consolidated basis, GCPL "expects flat sales in INR, double-digit growth in sales in constant currency and double-digit growth in EBITDA (reported)."
This is largely due to GAUM (Godrej Africa, US and Middle East), where the organic business is expected to see a “double-digit volume decline” largely led by West Africa.
In the domestic market, demand for household insecticides, in which the company operates under brands such as HITS and Good Knight, had been weak during the early parts of the quarter. This was "due to extreme heat waves across the country," he said.
While the Park Avenue and KamaSutra brands are performing well following portfolio simplification actions and are in line with our full-year growth ambition.
GCPL acquired both brands in April last year from Raymond, promoted by the Singhnia family.
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 consistent double-digit foreign exchange sales growth."
However, the Indonesian currency has seen high depreciation leading to lower growth in INR terms, he added.
However, its organic business GAUM (Godrej Africa, US and Middle East) is expected to see a “double-digit volume decline” largely led by West Africa due to a high base in the first quarter of the year fiscal 24 due to the appointment of a National Distributor which provides a unique selling benefit and some difficult pricing decisions in Nigeria.
“There has been a further impact driven by supply disruption in South Africa caused by the shipping crisis. As mentioned above, the currency in Nigeria continues to negatively impact our INR sales performance,” he said.
According to GCPL, this update provides an overview of operational performance and demand trends during the quarter ended June 30, 2024.
“This will be followed by a detailed performance update, following the approval of the Q1FY25 financial results by the Board of Directors,” he said.
The reported growth will be double digit in volume and single digit in value terms, GCPL said in its latest quarterly updates.
"Growth was broad in both home care and personal care," Godrej Group's consumer goods division said in a regulatory update.
However, on a consolidated basis, GCPL "expects flat sales in INR, double-digit growth in sales in constant currency and double-digit growth in EBITDA (reported)."
This is largely due to GAUM (Godrej Africa, US and Middle East), where the organic business is expected to see a “double-digit volume decline” largely led by West Africa.
In the domestic market, demand for household insecticides, in which the company operates under brands such as HITS and Good Knight, had been weak during the early parts of the quarter. This was "due to extreme heat waves across the country," he said.
While the Park Avenue and KamaSutra brands are performing well following portfolio simplification actions and are in line with our full-year growth ambition.
GCPL acquired both brands in April last year from Raymond, promoted by the Singhnia family.
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 consistent double-digit foreign exchange sales growth."
However, the Indonesian currency has seen high depreciation leading to lower growth in INR terms, he added.
However, its organic business GAUM (Godrej Africa, US and Middle East) is expected to see a “double-digit volume decline” largely led by West Africa due to a high base in the first quarter of the year fiscal 24 due to the appointment of a National Distributor which provides a unique selling benefit and some difficult pricing decisions in Nigeria.
“There has been a further impact driven by supply disruption in South Africa caused by the shipping crisis. As mentioned above, the currency in Nigeria continues to negatively impact our INR sales performance,” he said.
According to GCPL, this update provides an overview of operational performance and demand trends during the quarter ended June 30, 2024.
“This will be followed by a detailed performance update, following the approval of the Q1FY25 financial results by the Board of Directors,” he said.
