Godrej Consumer Products reported higher third-quarter sales growth and profit margins on Thursday, citing strong demand for its home and personal care products as well as a drop in input costs.
Godrej Consumer Products reported slow growth in the FMCG sector in the December quarter, owing to poor rural consumption and a post-holiday slowdown.
The firm said in its regulatory filing that despite the demand softness in India, it expect to deliver double-digit sales growth backed by low single-digit volume growth.
“There has also been a sequential improvement from high single-digit sales growth and mid single-digit volume decline in the previous quarter. The growth is broad based and led by around double-digit sales growth in both Home Care and Personal Care,” it said.
“Our Indonesia business has started to see gradual recovery in performance, with constant currency sales decline in low single digits. However, growth ex-Hygiene, is marginally positive,” the statement added.
Godrej Africa, the United States, and the Middle East (GAUM) maintains its sales growth momentum, posting double-digit sales growth in constant currency terms.
“At a consolidated level, we expect to deliver sales growth in mid-teens in constant currency terms and around double-digit in INR terms with flattish volumes. The growths have sequentially improved from mid-to-high single digit sales growth and mid-single digit volume decline in the previous quarters,” it stated.
“The quality of our profits should see meaningful improvement, led by Gross Margin recovery and continued marketing investments translating to high single-digit EBITDA growth,” the company added.
