Godrej Consumer Products says Q3 sales up on personal, home care demand
1 min read 05 Jan 2023, 04:06 PM ISTIn the December quarter, Godrej Consumer Products said that the FMCG sector witnessed slow growth driven by poor rural consumption and a slowdown post the festive season
PremiumGodrej Consumer Products on Thursday said that firm sees higher third-quarter sales growth and profit margins due to strong demand for its home and personal care products and a let-up in input costs.
In the December quarter, Godrej Consumer Products said that the FMCG sector witnessed slow growth driven by poor rural consumption and a slowdown post the festive season.
The company said that despite demand softness, it expects 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," said Godrej Consumer Products in its regulatory filing.
The growth is 'broad based' and led by around double-digit sales growth in both home care and personal care.
The firm said that 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.
Godrej Africa, USA, and Middle East (GAUM) continues its strong sales growth momentum, clocking double-digit sales growth in constant currency terms.
"At a consolidated level, we expect to deliver sales growth in the mid-teens in constant currency terms and around double-digit in INR terms with flattish volumes. Growths have sequentially improved from mid-to-high single-digit sales growth and mid-single-digit volume decline in the previous quarters," the company said.
"The quality of our profits should see meaningful improvement, led by Gross Margin recover and continued marketing investments translating to high single-digit EBITDA growth," the filing added.
FMCG major Marico on Wednesday said that the firm's consolidated revenue will be in low single digit in the December quarter on a year-on-year basis due to a muted recovery in rural demand amid elevated inflation. This even as demand for its higher-end products from urban customers held steady.
The company's scrip on Thursday ended 3.24 per cent higher at ₹9167.35 at BSE.
