Godrej Consumer Products witnesses recovery in domestic demand

Godrej Consumer Products today announced its business update for the third quarter of the fiscal year 2019-20. During the quarter, the company witnessed a mixed demand from various markets where it operates.

In terms of domestic demand scenario, Godrej witnessed marginally higher than mid-single-digit volume growth amid a slowdown in consumption. The company said that this growth was on account of a gradual recovery in household insecticides coupled with new product launches, effective marketing campaigns, and tactical consumer offers. Going forward, the company is expecting a gradual improvement in consumer demand in the quarters ahead, driven by a good monsoon and government stimulus.

The gradual recovery in the domestic household insecticide business is a remarkable factor from the investor’s perspective as this was resulting in the performance deterioration in the recent quarters.

In terms of the Indonesian market, the company clocked high single-digit constant currency sales growths, amidst an improving demand environment in the home and personal care space. This was led by new product launches and a steady expansion of general trade distribution.

In other markets, such as Africa, the USA, and the Middle East, the company witnessed a reversal in the trend with good recovery of more than mid-single-digit constant currency sales growth. This can be attributed to the good performance in South Africa and Rest of Africa, and the Middle East cluster.