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Market slowdown, high inflation hit Godrej's Q1 top line & bottom line growth

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Market slowdown, high inflation hit Godrej's Q1 top line & bottom line growth

Godrej Consumer Products has reported 12 per cent increase in its consolidated constant currency net sales for the quarter ended June 30, 2014. Q1 FY2015 India net sales increased by 6 per cent to Rs 977 crore.

The FMCG company’s net profit increased by 13 per cent to Rs 121 crore in Q1 FY2015. Q1 FY2015 consolidated net profit after minority interest increased by 8 per cent.

Godrej’s India business grew by 6 per cent, as the company continued to do well in its core categories in the country, backed by the success of new innovations. The international business grew by 17 per cent on a constant currency basis.

Q1 FY2015 consolidated EBITDA increased by 6 per cent, driven by a strong growth of 15 per cent in the international business EBITDA

Commenting on the financial performance of Q1 FY2015, Adi Godrej, Chairman, Godrej Group said, “Q1 of fiscal year 2015 has been a particularly challenging one. We witnessed the fourth consecutive quarter of a significant slowdown in growth in the household and personal care sector. GCPL continued to outperform in the India market, by growing at nearly 2x of the household and personal care sector growth this quarter. However, the overall market slowdown and high inflation in costs have affected both our top line and bottom line growth in India. At 17 per cent constant currency sales growth, our international business performance was very strong, despite the macro economic challenges in our international geographies. We feel optimistic that the worst is over. We are beginning to see improved consumer sentiment on the ground and are hopeful that this will start translating into better consumer demand in the quarters ahead. Growth in the second half of this year should be better than the first half. Consequently, our intent is to deliver a stronger performance overall this year, compared to the previous year.”

Category wise, Godrej’s household insecticides business grew at 9 per cent, well ahead of the category.

On the other hand, the soaps category continued to de-grow this quarter. However, the company maintained a strong momentum in hair colours and delivered a sales growth of over 14 per cent despite a significantly higher base from last year.

In the air fresheners category, Godrej Aer continued to do well, aided by consumer engagement initiatives.

The company recently launched a new portfolio of hand washes, a hand sanitiser and anti mosquito spray under the Godrej Protekt range. 

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