Godrej Consumer Products Q2: Volume continues to rise despite difficult macroeconomic conditions

6 Oct 2023 , 12:17 PM

Godrej Consumer Products Ltd. (GCPL), a major player in the FMCG industry, reported mid-single-digit volume growth for the second quarter that ended September 2023 despite facing challenges like weak macroeconomic conditions and unfavourable weather in India.

Weak macros and unfavourable weather were seen in India throughout the quarter. Our organic business maintained a solid performance with mid-single-digit volume increase despite the challenging operating environment, according to GCPL’s regulatory filing.

Home care experienced volume growth in the mid-single digits in particular product categories, while personal care saw growth in the low-single digits. The company also observed that the performance of its Park Avenue and KamaSutra brands had improved sequentially, showing that they are on track to fulfill their full-year forecast.

Beyond the limits of India, GCPL’s business in Indonesia kept growing, with double-digit volume and value growth, highlighting the company’s success with its global development.

The company maintained its strong success in the Godrej Africa, USA, and Middle East (GAUM) area, with constant currency sales growth hitting the mid-teens. However, negative currency translation effects are anticipated to cause a mid-single-digit fall in sales when expressed in Indian rupees (INR).

In terms of constant currency, GCPL expects mid-single-digit volume growth and double-digit sales growth at the consolidated level on an organic basis. Sales increase in terms of the rupee, however, is anticipated to be in the low single digits due to currency volatility.

While simultaneously boosting expenditures in category development, the company is nevertheless dedicated to increasing its EBITDA (including currency) margins year over year across major regions.

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