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GCPL
Commodity costs have fallen "sharply" in the last few months, the margin situation is now "pretty good" and a revival in sales volume is expected, helped by price drops in some categories such as soap, said Godrej Consumer Products Ltd (GCPL) Managing Director and CEO Sudhir Sitapati. In the last three-four months, a lot of commodities such as palm oil have deflated, he said, adding the inflation which is presently in the market is as a consequence of the high prices that were there six to eight months ago. "So I certainly do not see price hikes in the short to medium term unless the commodity situation goes up. I see, in categories like in soaps and all, price drops," Sitapati told reporters on the sidelines of an event here. Now the hyperinflationary scenario is gone off and the company "definitely expects volumes to revive", he said, adding there would be negative price growth over the next few months, but with better volumes. Sitapati expects consumption to come back and the ..
The Indian FMCG sector witnessed improvement in margins and slow growth in the December 2022 quarter but the rural markets continued to drag as retail inflation stayed at elevated levels, according to industry players. Godrej Consumer Products Ltd (GCPL) and Marico reported that although there is softness in demand, there has been an improvement partly due to the lingering effects of festive sales, while urban and premium categories maintained a steady pace during the October-December period. Godrej Consumer Products witnessed a "demand softness" in the domestic market and a slowdown post the festive season. "During the quarter, the Indian FMCG sector witnessed slow growth driven by poor rural consumption and a slowdown post the festive season," said the Godrej Group FMCG arm in its quarterly updates for Q3 FY23. Despite this, GCPL expects "double-digit sales growth backed by low single-digit volume growth". "The quality of our profits should see meaningful improvement, led by Gro
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 del
FMCG major Godrej Consumer Products Ltd (GCPL) is expecting volume growth to recover gradually next fiscal along with improvement in margins, coming out from the consumption slowdown and inflationary pressures, according to company Managing Director & CEO Sudhir Sitapati. The company will continue to focus on three existing categories - Household Insecticides, Air Care and Hair Colours - in both domestic as well as international markets for growth, as it believes there is "plenty of opportunities" in these areas. The Godrej group FMCG arm expects to have a "low volume growth and gradual improvement in EBITDA" for the ongoing January-March and coming April-June quarters. "As next year progresses, I expect volume growth to gradually recover but the EBITDA journey and the margin journey to go up continuously. I expect after two quarters or so, volumes will go up and margins will be a steady story going up," Sitapati told PTI. Terming the current situation in the market as ...