Covid-19 Outbreak: Godrej Consumer Products Expects Revenue To Contract In Q4
The consumer major said demand slumped after its supply chains were disrupted in the last twelve days of March.
Godrej Consumer Products Ltd. expects revenue from its India operations to decline in the “high teens” in the quarter ended March on the back of the novel coronavirus outbreak and a subsequent national lockdown.
The consumer goods maker also said its international business would report a “mid-single digit” sales decline in rupee terms, resulting in consolidated sales declining by “low double-digits” in rupee terms in the quarter, it said in an exchange filing.
The maker of Cinthol soap and Good Knight mosquito repellent expects a “low double-digit sales” decline in the performance of its distributors, implying their stock levels are depleting. “We’re awaiting data on the stock levels on general trade shelves.”
It expects a “gradual bounce back” in the near term, driven by restoration of supply chains, higher consumption for personal wash and an ongoing favourable season for household insecticides and gain in market shares across categories.
The consumer major said that demand was steady in India till the Covid-19 outbreak and slumped after its back-end and front-end supply chains were disrupted in the last twelve days of March.
Its Indonesia business recorded close to mid-single-digit constant currency sales growth and business in Africa, the U.S. and Middle East reported a decline in teens in constant currency terms.
In other geographies, Latin America is expected to remain steady in constant currency terms and muted in rupee terms, while the company’s performance in SAARC countries was steady.
Most of the large markets are in lockdown or partial lockdown mode till mid-April, the company said.
Godrej Consumer Products said it plans to introduce some hygiene products across markets, some of which have already been done and the rest will be launched and scaled up in the near term.