Godrej Consumer Expects Low Double-Digit Sales Growth In Q2
Godrej Consumer Products Ltd. expects sales to rise in the quarter ended September as demand remained stable across categories and geographies it operates in.
“In India, we expect to deliver close to low double-digit year-on-year sales growth this quarter, led by hygiene (including soaps) and household insecticides categories,” the consumer goods maker said in its quarterly update to the exchanges. That’s despite a marginal impact on household insecticides on account of regional lockdowns and resultant back-end supply chain disruptions.
With a Covid-19 vaccine still some time away, customers are focusing more on health to avoid contagion. Ever since the outbreak of the novel coronavirus, that has infected more than 66 lakh people in India, sale of sanitisers to household disinfectants and insecticides has spiked. While many consumer goods makers have expanded their product offerings in the hygiene segment, some have forayed.
Nisaba Godrej, chairperson and managing director at the maker of Good Knight and Hit insect repellants, had in August told BloombergQuint that the company plans to launch more hygiene products and household insecticides this year. She, however, didn’t provide any details about the number of products in the pipeline.
The company also witnessed a sequential recovery in its hair colour and air freshener categories. These were severely impacted in the initial period of the lockdown as manufacturing of only essential items were allowed.
Indonesia: Godrej Consumer expects to deliver low single-digit year-on-year constant currency sales growth this quarter, led by household insecticides and hygiene. It continues to see sequential recovery in air freshness.
“Business performance was marginally impacted by the worsening Covid-19 situation and stringent social distancing norms which were implemented from mid-September,” Godrej Consumer said in its update.
Africa, U.S. and Middle East: The company’s business recorded strong sequential recovery across most of its markets and expects to deliver close to low double-digit year-on-year constant currency sales growth in July-September.
Latin America and SAARC: Godrej Consumer expects sales performance in Latin America business to remain steady in constant currency terms. Its SAARC business continues to deliver healthy sales performance.
Also Read: Sugar Mills Cause Sanitiser Glut In India
On Monday, Godrej Consumer’s peer Marico Ltd., too, released its quarterly update, saying it expects volumes to increase in the three months ended September as consumer demand revived for most of its core business.