homebusiness Newscompanies NewsLower inflation and price drops are aiding consumer sentiment: Godrej Consumer Products
Lower inflation and price drops are aiding consumer sentiment: Godrej Consumer Products
Sameer Shah, Godrej Consumer Products Ltd in its interaction with CNBC-TV18 said demand in fourth quarter of financial year 2022-23 has improved compared with the earlier quarters of the year and lower inflation with price drops are aiding sentiments.
The company expects to clock high single digit volume growth in financial year 2023-24. India branded business delivered 13 percent volume growth, led by double-digit volume growth in both Home Care and Personal Care, the company said in a press release in results declared on Wednesday.
The fast-moving consumer goods major on Wednesday posted a profit after tax of Rs 452 crore for the March quarter (Q4FY23), beating estimates. The FMCG company's revenue growth came in at 9 per cent to Rs 3,200 crore as against Rs 2,916 crore in the same quarter of last fiscal.
In terms of various categories, Magic Wash has mid-single digit contribution currently. The volume growth in household insecticides was in double-digits in FY23. Furthermore, the underpenetrated categories have seen growth in FY23. In its international operations, African market saw a recovery in late March and expects double digit growth in FY24. Also, Indonesia is expected to see a much improved performance in FY24.
Shah expects gross margin expansion in FY24. The company witnessed 200 bps of cost reduction in FY23 and expects to see further reduction in FY24.
For FY24, the company targets high single-digit volume growth with higher profit growth. It expects to see meaningful distribution and cost synergies from second half of FY24, with the Park Avenue acquisition where margins are expected at 25 percent in FY25.
First Published: May 11, 2023 11:59 AM IST
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