Godrej Consumer Products expects healthy domestic sales growth in Q3FY23

6 Jan 2023 , 01:50 PM

Godrej Consumer Products Limited has informed to the exchanges that during the quarter, the Indian FMCG sector witnessed slow growth driven by poor rural consumption and a slowdown post the festive season. 

However, despite the demand softness in India, the company 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. The growth is broad based and led by around double-digit sales growth in both Home Care and Personal Care.

‘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 company said in a filing.

Godrej Africa, USA, and Middle East (GAUM) continues its strong sales growth momentum, clocking double-digit sales growth in constant currency terms. 

The Company further added, ‘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.

Further, 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. ‘

At around 2:00 PM, Godrej Consumers was trading at Rs917.95 per share higher by 0.07% on the BSE.

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