Q1 growth flat in consumer demand

New Delhi Consumer demand in the domestic market remained steady in the April-June quarter and the company expects robust performance with double-digit volume growth in the organic business, Godrej Consumer Products Ltd said on Wednesday. The performance was broad-based with double-digit volume growth in home care and higher than mid-single-digit volume growth in personal care, the Godrej Group’s FMCG arm said in its qu arterly update for Q1 FY24. “Sales growth was marginally higher than mid-single digit, as we passed on the benefits of lower input costs to our consumers,” said GCPL. Its sales growth including inorganic business, during the April-June quarter, was in the high-single digits. “In India, overall Consumer demand remained steady as seen in the previous few quarters. Our organic business continued to deliver robust performance with double-digit volume growth,” said GCPL’s updates.

In international markets, GCPL’s Indonesia business delivered steady performance on the back of structural changes implemented last year. On constant currency, sales are expected to grow in the mid-teens in Indonesia -- GCPL's second-biggest market after India. "Godrej Africa, USA, and Middle East (GAUM) continued to deliver consistent performance with constant currency sales growth in mid-teens," it said. However, in rupee terms, there was an adverse currency translation impact resulting in high single-digit sales growth. "At a consolidated level (organic), we expect to deliver high-single-digit volume growth, teens growth in constant currency terms translating to close to double-digit sales growth in INR terms. Sales growth (including inorganic) to be in double-digits," it said. GCPL further said its profits have seen sustained improvement, led by "robust gross margin expansion and ongoing category development" investments.