FMCG major Godrej Consumer Products Ltd (GCPL) on Thursday (October 5) said despite facing challenges such as weak macroeconomic conditions and adverse weather in India, the organic business of the company delivered a steady performance with mid-single digit volume growth in the second quarter ended September 2023.
"In India, we witnessed weak macros and adverse weather conditions during the quarter. Despite the tough operating environment, our organic business delivered a steady performance with mid-single digit volume growth," GCPL said in a regulatory filing.
In specific product segments, home care witnessed mid-single digit volume growth, while personal care achieved growth in the low-single digits. Further, the company noted sequential improvements in the performance of its Park Avenue and KamaSutra brands, indicating that they are on track to meet their full-year guidance.
Beyond Indian borders, GCPL's business in Indonesia continued its upward trajectory, reporting double-digit volume and value growth, underscoring the company's international expansion success.
In the Godrej Africa, USA, and Middle East (GAUM) region, the company maintained its consistent performance, with constant currency sales growth reaching the mid-teens. However, when converted to Indian rupees (INR), adverse currency translation effects are expected to lead to a mid-single-digit decline in sales.
At the consolidated level, on an organic basis, GCPL anticipates mid-single-digit volume growth and double-digit sales growth in constant currency terms. However, due to currency fluctuations, sales growth in rupee terms is projected to be in the low single digits.
The company remains committed to expanding its EBITDA (including forex) margins year-on-year across key markets, while simultaneously increasing investments in category development.
Shares of Godrej Consumer Products Ltd ended at Rs 977.90, down by Rs 12.45, or 1.26 percent, on the BSE.
