Godrej Consumer Products Limited on 5 January announced that its organic business delivered steady underlying volume growth of mid-single digit in the quarter ended December 30, 2023.
Apart from this, the firm said growth was broad-based across both Home Care and Personal Care.
The firm in a regulatory announcement said that Park Avenue and KamaSutra brands, owned by it, continue to perform well and are on track to achieve the full-year ambition. Also, the reported volume growth of the company continues to be in double digits.
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“Our Indonesia business continues to deliver compelling performance, with close to double-digit volume growth and high-single-digit constant currency sales growth,” the firm said in a regulatory filing.
Among others, the firm said that the GAUM (Godrej Africa, USA, and Middle East) business had flattish to mild decline in volume growth, driven by trade destocking in geographies that the plan to restructure in Q4. “Although it sustained double-digit constant currency sales growth, the impact of the Naira devaluation will result in high-single-digit sales decline,” it said.
Citing the sharp devaluation in Argentinian Peso from 361 to 808, the firm said its LATAM business revenue has been severely impacted due to hyperinflation accounting has impacted nine months of revenue. “This is likely to have a negative impact of mid-single digit on the consolidated sales. However, the impact on profit is minimal. Despite the challenging environment, the LATAM business continues to deliver positive volume growth,” the firm said.
However, the firm expects to deliver mid-single volume growth, double-digit constant currency sales growth but low-single-digit sales decline in INR terms due to GAUM and LATAM currency and hyperinflation accounting impact at the Consolidated level.
The reported volume growth is likely at the high-single-digit and the reported sales growth to beis flattish in INR terms. “We continue to drive year-on-year expansion in EBITDA (incl. Forex) margin despite significantly higher category development investments,” it added.
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Published: 05 Jan 2024, 10:19 PM IST