Godrej Consumer Products Ltd has stated that operating conditions in India remained challenging in the fourth quarter of FY24. Despite this, the company experienced robust underlying volume growth at a high single-digit rate, supported by broad-based growth. In its Q4 FY24 quarterly update, the company anticipates achieving organic consolidated underlying volume growth in the high single digits and sales growth in the mid-single digits, largely influenced by currency volatility.
India’s operating environment is still somewhat muted. We had robust underlying volume growth at high single digits in our India organic business, which was broad-based in both personal care and home care, according to Godrej Consumer Products Ltd (GCPL).
The company reported that their launch of GoodKnight Agarbatti was well received by customers, despite the fact that the prolonged winter in the North and East had reduced demand for household pesticides. Furthermore, the statement read, “Park Avenue and KamaSutra brands fulfilled the seasonal category objectives with their performance. There is still double-digit underlying volume increase.
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Regarding its business in Indonesia, the company stated that it continues to maintain strong performance, achieving double-digit growth in both volume and sales.
The company stated that its GAUM (Godrej Africa, USA, and Middle East) organic business achieved high single-digit volume growth and double-digit sales growth in constant currency terms.
However, it added that due to the devaluation of the Nigerian currency Naira in January, sales in rupee terms are expected to experience a double-digit decline.
“At a consolidated level (organic), we anticipate achieving high single-digit underlying volume growth and mid-single-digit sales growth, largely influenced by currency volatility. Despite increased media investments, the EBITDA margin (inclusive of forex) continues to expand year-on-year,” stated GCPL. The company added that reported underlying volume growth is expected to be in the double digits.
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