Godrej Consumer Products expects Q4 growth on improved consumer demand

Growth in domestic business exceeds expectations, says maker of Cinthol soaps

Godrej Consumer Products said on Wednesday it expects double-digit sales growth on a consolidated basis in the fourth-quarter, citing "very strong" business for its products.

Consumer demand is steady and the FMCG sector is gradually recovering.  “The quality of our profits should see improvement, led by gross margin recovery and continued marketing investments translating to strong double-digit EBITDA growth,” said the company, referring to earnings before interest, taxes, depreciation, and amortization.

The maker of Cinthol soaps said it expected double-digit volume and value growth as domestic business exceeds expectations. “Our domestic branded business growth was very strong registering volume and value growth in teens. This is in line with our strategy of volume driven category development.”

Growth was led by double-digit volume and value improvement in home care and personal care. The company said its Indonesia business was recovering gradually with mid-single digit constant currency sales growth.

“We believe building blocks in Indonesia are in place to drive steady-to-strong performance in the next fiscal year,” it said in its business update.

Godrej Africa, USA, and Middle East (GAUM) reported better than mid-single digit sales growth in constant currency terms due to elections and the impact of demonetisation in Nigeria. The company expected a strong sales recovery in March in these regions.