22 hrs ago
Godrej Consumer Products Sees High-Teens Revenue Growth in Q2FY27
Godrej Consumer Products expects to sell more and earn more in the September quarter.
It forecasts revenue growth in the high teens and volume growth in the high single digits.
The company says unusual monsoon conditions and higher prices for materials made business harder.
A comparison with a weaker quarter last year also helped its expected growth.
Its personal care and home care products performed well in India.
The company also expects growth in Indonesia and in its Africa, USA and Middle East business.
To manage higher costs, it plans to adjust prices, save money and improve how it moves products.
It says it is still on track to meet its goals for the full year.
Godrej Consumer Products expects consolidated revenue growth in the high teens, volume growth in the high single digits and double-digit EBITDA growth for the September quarter.
The company said uneven monsoon conditions, an intensifying El Niño and rising commodity costs affected consumption; a favourable year-ago comparison supported growth.
Standalone revenue is expected to grow in the teens, with high-single-digit underlying volume growth despite a 100–150 basis point impact from trade inventory correction.
Indonesia is expected to post high-teens revenue growth, while the Godrej Africa, USA and Middle East business is expected to deliver double-digit revenue and volume growth.
The company cited pricing actions, cost savings and supply-chain efficiencies as responses to higher input costs, and said it remains on track to meet full-year guidance.
- Who
- Godrej Consumer Products.
- What
- The company expects high-teens consolidated revenue growth, high-single-digit volume growth and double-digit EBITDA growth.
- Where
- Across its consolidated businesses, including India, Indonesia, and Africa, the USA and the Middle East.
- When
- The September quarter of FY27 (Q2FY27); the company issued its update on Monday.
- Why
- The company cited healthy portfolio performance and a favourable year-ago base, while also noting uneven monsoons, inflation and commodity-cost pressures.
Key facts
- Consolidated revenue outlook
- High-teens growth
- Consolidated volume outlook
- High-single-digit growth
- EBITDA outlook
- Double-digit growth
- Standalone revenue outlook
- Growth in the teens
- Trade inventory correction
- Estimated 100–150 basis point impact on standalone performance
- Indonesia outlook
- High-teens revenue growth and high-single-digit volume growth
- Input-cost response
- Calibrated pricing, cost savings, supply-chain efficiencies and disciplined cost management
- Full-year guidance
- The company says it remains on track and expects to exceed guidance in select areas
Quotes
Godrej Consumer Products
The consumer goods company issuing the quarterly update.
“We have successfully navigated significantly larger commodity cycles in the past and remain confident in our ability to manage the current inflationary environment without compromising our growth agenda. We will continue to prioritise volume-led growth while protecting the long-term health of our brands through appropriate investments in innovation, distribution, and category development.”
financialexpress.com
“The GAUM (Godrej Africa, USA and Middle East) business is expected to report double-digit revenue and volume growth, supported by market development in core categories and portfolio transformation through scaling FMCG categories.”
financialexpress.com
Sources
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