Godrej Consumer Reports Mixed Q1 Performance Amid Market Challenges

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Synopsis:

Godrej Consumer Products sees varied growth across markets in Q1 FY25. The domestic market shows high-single-digit volume and mid-single-digit value growth, while international markets face currency impacts. .

Godrej Consumer Products Q1 Results

Godrej Consumer Products noted a soft domestic market for the quarter, with high-single-digit organic volume growth and mid-single-digit value growth. Despite the subdued market, the overall volume growth was in double digits, while value growth was in high single digits.

The company's consolidated level (organic) showed flattish INR sales, double-digit constant currency sales growth, and double-digit EBITDA (reported) growth.

Segment Analysis - Home Care and Personal Care

Both segments experienced broad-based growth. However, the demand for Household Insecticides was initially weak due to extreme heat waves across the country.

Despite this, the performance of brands like Park Avenue and KamaSutra improved significantly following portfolio simplification actions, aligning with the company's full-year growth goals.

Explore: Godrej Consumer Products Share Price

International Business Performance

  • Indonesia The Indonesia business showed a robust performance with high-single-digit volume growth and double-digit constant currency sales growth. However, the significant depreciation of the Indonesian currency led to lower growth in INR terms.
  • GAUM (Godrej Africa, USA, and Middle East)

    The GAUM segment faced challenges, with an expected double-digit volume decline, primarily in West Africa. This decline was attributed to a high base in Q1 FY24 due to the appointment of a National Distributor, which provided a one-time sell-in benefit, and difficult pricing decisions in Nigeria.

    Additionally, supply disruptions in South Africa due to a shipping crisis further impacted performance. The currency situation in Nigeria continued to adversely affect INR sales performance. Despite these challenges, EBITDA (reported) in INR terms grew in strong double digits.

Key Takeaways

Godrej Consumer Products' performance in Q1 FY24 was mixed. While the domestic market saw moderate growth, international markets like Indonesia performed well, albeit with currency-related challenges. The GAUM region faced significant headwinds but still managed to grow EBITDA strongly in INR terms.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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