Godrej Consumer Expects Mid-Single Digit Sales Growth In June Quarter
Godrej Consumer Product Ltd. expects a “mid-single-digit, volume-driven sales growth” in the April-June 2020 quarter, when the lockdown was enforced to tackle the spread of the coronavirus pandemic.
The Godrej group firm has witnessed a “strong recovery” from mid-May and June across most of the markets, where it operates.
It has witnessed growth in its household insecticide category besides a strong momentum in the hygiene category, while its colour and air freshener segments were temporarily impacted by the lockdown.
"We expect close to mid-single digit, volume driven sales growth in the quarter," said Godrej Consumer in a quarterly update for the April-June period.
During the lockdown, GCPL displayed strong agility in ramping up the production and resolving logistics challenges. It also leveraged technology and relationships with channel partners to meet the end consumer demand during the lockdown period.
"Q1/FY21 quarter was an unprecedented period due to the spread of the coronavirus pandemic across the globe, impacting all the geographies of our operations in the early part of the quarter," it said.
The company, which operates into several geographies and has substantial presence, said demand trends were mixed for the categories and geographies.
"In Indonesia, in spite of disruptions caused by coronavirus, we expect close to mid-single-digit constant currency sales growth," it said.
GCPL will update detailed performance of the April-June quarter, after the approval of financial results by its board.
The company has a range of brands across personal and home care such as Cinthol, Protekt, Ezee, Godrej No 1 and Hit and Good Knight.
According to GCPL, it is witnessing strong demand in the household insecticide category and strong traction in the hygiene category.
"We have seen strong recovery from mid-May and June across most of our markets of operations," the company said.
"Amid disruptions caused by coronavirus, most of the key countries were in standstill mode in April and early-May resulting in sales loss," it said.
GCPL is an over $1.5-billion leading emerging markets company having presence in over 90 countries. It has presence in the emerging markets of Asia, Africa and Latin America in categories such as home care, personal care, hair care.