Godrej Consumer Products expects improvement in sales growth in the coming quarters

Our Bureau Mumbai | Updated on January 06, 2020 Published on January 06, 2020

Godrej Consumer Products said on Monday that during the quarter ended December 31, 2019, the demand in the country continued to be challenging, impacted by a general consumption slowdown. It observed a “marginally higher than mid-single digit volume growth trend” during the quarter, the company said in a regulatory filing.

“The uplift in volume growth was led by gradual recovery in household insecticides, new product launches, effective marketing campaigns and tactical consumer offers. The sales value growth also mirrors the trend of past few quarter’s sales value growth. We look forward to a gradual improvement in consumer demand in the quarters ahead driven by good monsoon and government stimuli,” the company said.

The quarter also witnessed “relatively mixed demand” across some of its geographies of operations, it added.

In Indonesia, it recorded close to high single digit constant currency sales growth, amidst an improving demand environment in home and personal care space, it said. The growth is driven by new product launches and gradual expansion of general trade distribution (Project Rise), it added.

In GAUM (Godrej Africa, USA, Middle East), the company said it saw a good recovery with higher than mid-single digit constant currency sales growth, thus reversing the trend of the past few quarters. The performance was driven by improved performance in South Africa and Rest of Africa and Middle East cluster, it said.

“Within the ‘others’ geographies, the performance in Latin America is expected to be strong in constant currency terms. However, in rupee terms due to currency depreciation in Argentina, we expect the performance to be muted. Performance in SAARC countries was robust,” the company said.

Published on January 06, 2020
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