Godrej Consumer Products on Friday said that at a consolidated level, the company expects to deliver underlying volume growth of high single digit and sales growth of mid single digit, driven largely by currency volatility. EBITDA (incl. forex) margin, it said, continued to expand year-on-year despite increased media investments.
In an exchange filing, Godrej Consumer Products said that with operations conditions in India remaining subdued, its India organic business continued to deliver strong underlying volume growth at high-single digit with growth being broad-based across both Home Care and Personal Care. The consumer goods company said that the demand in household insecticides has been subdued due to an extended winter in North and East. Further, the company’s GoodKnight Agarbatti launch was well received by consumers. Park Avenue and KamaSutra brands, it added, delivered in-line with category seasonality. “Reported underlying volume growth continue to be in double-digit,” it said.
Meanwhile, its Indonesia business continued to deliver strong performance with double digit volume growth and sales growth.
The GAUM (Godrej Africa, USA, and Middle East) organic business delivered high single digit volume growth along with double-digit constant currency sales growth. However, due to Naira devaluation in January, Godrej Consumer Products said, sales in INR terms will see double-digit decline.
In terms of the company’s East Africa re-organisation, it said, the transaction has been largely completed as of 31st March 2024. “In Q4, we expect an impact on revenue of ~Rs 70 crore. Any potential charge on account of impairment testing of GAUM CGU and other one-time accounting assessments will be concluded in Q4FY24. The impact of re-organisation is likely to be positive on cash flows,” it concluded.