Godrej Consumer Products expects mixed demand trends across geographies in first quarter of FY21
Mumbai/IBNS: Godrej Consumer Products Limited (GCPL), part of the Godrej Group, has come out with an overall summary of its operating performance and demand trends seen during the first quarter of Financial Year 2021 (Q1FY21), a quarter that bore the brunt of the pandemic crisis.
The quarter ended June 30, 2020, was an unprecedented period, the company said in its release, due to the spread of COVID-19 pandemic across the globe, which affected all the geographies of the operations in the early part of the quarter.
To ensure the safety of its employees and business partners, the company implemented all the required regulations for the containment of the pandemic, during this time.
However, according to the company, despite the impact of lockdown in the early part of the quarter, it managed to ramp up production and resolved logistics challenges.
The demand trends were mixed for the categories and geographies of its operations, the company said.
In India, resurgence of the Household Insecticide category continued with strong underlying consumer demand.
There was strong momentum in the Hygiene category.
However, according to GCPL, demand in Hair Colour and Air Freshener saw a decline, temporarily affected by the lockdown.
The company expects close to mid single digit, volume driven sales growth in the quarter.
In Indonesia, in spite of disruptions caused COVID-19 virus, the company expects close to mid single digit constant currency sales growth.
Here too they recorded strong demand in the Household Insectide category and strong traction in the Hygiene category, the company reported.
In GAUM (Godrej Africa, USA, Middle East), the company expects sales decline in early twenties, in constant currency terms.
Owing to disruptions caused by the Novel Coronavirus, most of the key countries were in standstill mode in April and early May resulting in sales loss.
However, according to the company, it recorded strong recovery from mid May and June across most of their markets of operations.
Within the ‘others’ geographies, the company expects its performance in Latin America to be steady in constant currency terms.
However, in INR terms, it expects the performance to be weak.
Performance in SAARC countries continues to be steady, according to GCPL.
At consolidated level, the company expects absolute sales to be marginally lower compared to the base quarter in INR terms.
The detailed performance update, post the approval of 1QFY21 financial results by the Board of Directors, is expected soon.