Godrej Consumer expects to deliver constant currency sales growth in mid-twenties for Q4

Godrej Consumer Products on Wednesday provided an overall summary of the operating performance and demand trends during the quarter ended 31 March 2021.

During the quarter, Godrej Consumer said demand trends in its categories across key countries, remained stable. In India, the FMCG company expects to deliver sales growth around the thirties, driven by strong volume growth and calibrated price increases. Sales growth was quite broad based across key categories of soaps, household insecticides and hair colours. The company also witnessed strong sales growth momentum in each of the months within the quarter.

In Indonesia, Godrej Consumer expects gradual recovery with mid-single digits constant currency sales growth. While macroeconomic variables and a stretched COVID-19 environment continued to pose challenges, we are witnessing gradual recovery in the Air Fresheners category and are strategically addressing the high competitive intensity in the Wet Wipes category.

In Godrej Africa, USA and Middle East, growth momentum continued across most of the company's key countries of operations. Godrej Consumer said it expects to deliver constant currency sales growth close to the thirties.

The company expects sales growth in Latin America business to remain strong in constant currency terms. The company's SAARC business also continued to deliver healthy sales growth.

Meanwhile, the company said Covid 19 has changed consumer behaviour with regards to demand for personal and home hygiene and we see this as a strong focus area for the firm going forward. This has resulted in a broader home and personal care play ambition.

At a consolidated level, the company expects to leverage category and geographic portfolio well and expects to deliver constant currency sales growth in the mid-twenties.

Shares of Godrej Consumer Products were trading 0.48% lower at Rs 735.90 on BSE.

Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colourants, toiletries and liquid detergents. The company posted a 12.78% increase in net profit to Rs 502.08 crore on a 10% rise in total revenue from operations to Rs 3055.42 crore in Q3 FY21 over Q3 FY20.

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