British FMCG major Reckitt on Wednesday said implementation of GST rate changes in India impacted its net revenue growth in the September quarter. The company follows a January to December accounting year.
“We continued to drive encouraging sell-out performance in India, whilst LFL net revenue growth (which was in low single digit) was impacted by the GST regime change in September. This resulted in a shift of trade orders to Q4,” the company said.
Reckitt operates in the Indian market with brands, which include Lysol, Vanish, Strepsils, Veet, Dettol, Harpic, and Durex.
Its germ protection brand Dettol saw volume-led growth in markets, including India, which helped it grow by double digits in the quarter. Besides, in the intimate wellness category, its brand Durex continued to gain market share in India, Reckitt said on Wednesday.
Leading FMCG makers from HUL to GCPL and Dabur in India reported disruptions in trade channels in September due to the implementation of new GST slabs, which reduced prices and had a transitory impact on their quarterly revenue, along with a moderation in their operating profits.
On September 4, the Indian government announced the next-generation (GST 2.0) reforms, lowering duties on most daily essentials, including food and personal care products, keeping in a lower slab of 5%.
In the September quarter, Reckitt’s total group net revenue was £3,611 million, with a 7% growth on a like-for-like (LFL) basis. Its volume growth was at 4.2%.
In the emerging market, Reckitt’s net revenue was at £1,080 million, up 15.5%.
Commenting on the results, CEO Kris Licht said, “We returned to growth in developed markets against a challenging consumer landscape and continued to deliver outsized growth in emerging markets. With our sharpened operating structure, we are executing our plan and progressing with our strategic objectives.”
Over the outlook for 2025, Reckitt said, “We maintain expectations of Group LFL net revenue growth of +3% to +4%.