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2 min read | Updated on July 09, 2024, 17:14 IST
SUMMARY
Godrej Consumer Products has said its India business has been doing well but reported struggles in foreign markets, especially in Africa.
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Godrej Consumer Falls Over 2% after Q1FY24 Business Update
Godrej Consumer Products said its India business performed well with high-single-digit organic volume and mid-single-digit value growth despite the operating conditions in India remaining soft in the April-June quarter.
“Reported growth will be double-digit in volume and high-single digit in value terms. The growth was broad-based across both Home Care and Personal Care,” the company said in a regulatory filing.
The company’s well-known brands Park Avenue and KamaSutra have performed well following portfolio simplification efforts, staying on track with full-year growth targets. "Park Avenue and KamaSutra brands are performing well post portfolio simplification actions and are in line with our full-year growth ambition," it added.
The Indonesian business of Godrej Consumer gave some ray of hope with impressive high-single-digit volume growth and double-digit constant currency sales growth. However, this performance was impacted by depreciation in the Indonesian currency terms vis-à-vis INR.
However, the GAUM (Godrej Africa, USA, and Middle East) segment is expected to experience a double-digit volume decline mainly led by West Africa. This decline is due to a high sales base in the same quarter last year and tough pricing decisions in Nigeria.
Depreciation of Nigerian currency has continued to impact negatively on its rupee sales. However, it delivered strong double-digit rupee growth for EBITDA (Earnings Before Interest Tax Depreciation & Amortization).
Godrej forayed in Africa in 2006 and has added a number of brands to its portfolio through the acquisition route.
Godrej Consumer shares have outperformed the broader market gaining around 35% compared to the 26% rise seen in the Nifty 50 index over the last one year.
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