FMCG major Godrej Consumer Products Ltd (GCPL) expects a double-digit sales growth in the domestic market for the December 2022 quarter.
This is backed by low single-digit volume growth said the Godrej Group’s FMCG arm in its quarterly update for the third quarter of FY23.
“There has also been a sequential improvement from high single-digit sales growth and mid-single-digit volume decline in the previous quarter,” it said.
According to GCPL, the growth is “broad-based” and led by around double-digit sales growth in both Home Care and Personal Care.
In the international business, in Indonesia, which is GCPL’s largest foreign market, the company is witnessing a gradual recovery in performance.
Though in constant currency sales declined to low single digit in Indonesia, it added.
“Godrej Africa, USA, and Middle East (GAUM) continue its strong sales growth momentum, clocking double-digit sales growth in constant currency terms,” it added.
At a consolidated level, GCPL expects to deliver sales growth in the mid-teens in constant currency terms and around double-digit in rupee terms with “flattish volumes”.
“The growths have sequentially improved from mid-to-high single-digit sales growth and mid-single-digit volume decline in the previous quarters,” it said.
“The quality of our profits should see meaningful improvement, led by Gross Margin recovery and continued marketing investments translating to high single-digit EBITDA growth.”
While commenting on the Indian FMCG industry, GCPL said the sector witnessed “slow growth driven by poor rural consumption” and a slowdown post the festive season.
“However, despite the demand softness in India, we expect to deliver double-digit sales growth backed by low single-digit volume growth,” GCPL said.
GCPL quarterly updates provide an overall summary of the operating performance and demand trends during the quarter that ended December 31, 2022.
“This will be followed by a detailed performance update, post the approval of the 3QFY23 financial results by the Board of Directors,” it said.