Godrej Consumer expects low double digit sales growth in Q2

At a consolidated level, the consumer goods company expects to deliver close to low double-digit year-on-year sales growth (in rupee terms) in Q2 September 2020.

Godrej Consumer Products on Tuesday (6 October 2020) said demand trends in its categories remained stable and improved sequentially across key geographies during Q2 September 2020.

In India, the company expects to deliver close to low double-digit year-on-year (y/y) sales growth this quarter, led by the hygiene (including soap) and household Insecticides categories. Household insecticides was marginally impacted by regional lockdowns and resultant back-end supply chain disruptions. The firm continues to see sequential recovery in the hair colour and air fresheners categories.

In Indonesia, the firm expects to deliver low single-digit y/y constant currency sales growth this quarter, led by the household insecticides and hygiene categories. The firm continues to see sequential recovery in the air fresheners category. Business performance was also marginally impacted by the worsening Covid-19 situation and stringent social distancing norms which were implemented from mid-September.

In Africa, USA and Middle East, the consumer goods company recorded strong sequential recovery across most of its markets of operations. The firm expect to deliver close to low double-digit y/y constant currency sales growth this quarter. The firm is putting the right building blocks in place and remain focused on driving sustainable sales growth in the future.

The company expects sales performance in its Latin America business to remain steady in constant currency terms. Its SAARC business too continues to deliver healthy sales performance.

At a consolidated level, the company expects to deliver close to low double-digit y/y sales growth (in rupee terms) this quarter.

Shares of Godrej Consumer Products were down 1.45% to Rs 741.75.

On a consolidated basis, Godrej Consumer Products net profit fell 3.1% to Rs 394.88 crore on 0.8% decline in net sales to Rs 2,311.17 crore in Q1 June 2020 over Q1 June 2019.

Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colourants, toiletries and liquid detergents.

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