Godrej Consumer Products on Monday (6 July) said that it expected to post mid single-digit sales growth in Q1 June 2020 in India, driven by higher volumes.
The FMCG company said the nationwide lockdown impacted its performance in the early part of the quarter. However, the firm ramped up the production and resolved logistics challenges. The demand trends were mixed for the categories and geographies of its operations.
In India, resurgence of household insecticide category continued with strong underlying consumer demand. The firm did witness strong momentum in the hygiene category, however saw muted demand in hair colour and air freshener, which were temporarily impacted by the lockdown. The company expects close to mid single-digit, volume driven sales growth in the quarter.
In Indonesia, the firm expects close to mid single digit constant currency sales growth. In GAUM (Godrej Africa, USA, Middle East), it expects sales decline in early twenties, in constant currency terms. The firm saw a strong recovery from mid May and June across most of its markets of operations.
Within the 'others' geographies, the performance in Latin America is expected to be steady in constant currency terms. However, in INR terms the performance is likely to be weak. Performance in SAARC countries continues to be steady.
At consolidated level, Godrej expects absolute sales to be marginally lower compared to the base quarter in INR terms.
Shares of Godrej Consumer Products fell 0.99% to Rs 700.60.
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On a consolidated basis, the company reported a 75.42% drop in net profit to Rs 229.90 crore on a 12.2% fall in net sales to Rs 2,132.69 crore in Q4 March 2020 over Q4 March 2019.
Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colourants, toiletries and liquid detergents.
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