Godrej Consumer Products Ltd., which was impacted by the slowdown in the market in the third quarter ended December 2019, is looking for gradual improvement in demand in the current quarter due to good monsoon and government stimuli, the company said.
It said during the quarter, it witnessed relatively mixed demand across some of its geographies of operations.
“In India, despite weak demand conditions, we continued our marginally higher than mid single-digit volume growth trend during the quarter. The uplift in volume growth was led by gradual recovery in household insecticides, new product launches, effective marketing campaigns and tactical consumer offers,” the company said in a filing with the stock exchanges, weeks ahead of the announcement of its Q3 results.
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It said the sales value growth also mirrored the trend of past few quarters’ sales value growth. “In Indonesia, we recorded close to high single-digit constant currency sales growths, amid an improving demand environment in home and personal care space. The growths are driven by new product launches and gradual expansion of general trade distribution,” it said.
Trend reversal
“In GAUM (Godrej Africa, USA, Middle East), we saw good recovery with higher than mid single-digit constant currency sales growth, thus reversing the trend of the past few quarters. The performance was driven by improved performance in South Africa and Rest of Africa and Middle East cluster.”
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The company said it continued to drive scale up of wet hair care and the relaunch of Darling brand in dry hair category along with expansion in distribution to deliver sales growth for the year.
It said the performance in Latin America was expected to be strong in constant currency terms. “However, in INR terms, due to currency depreciation in Argentina, we expect the performance to be muted. Performance in SAARC countries was robust,” it added.