Godrej Consumer expects high-teens Q1 growth driven by volume

New Delhi, Jul 3 (PTI) Godrej Consumer Products Ltd (GCPL) on Friday said it expects to post high-teens consolidated revenue growth in the first quarter of FY27, driven by strong volume-led performance across its businesses, despite elevated input costs and sourcing challenges.

The quarter saw significant volatility in costs on account of movement in crude prices and other raw materials, and faced sourcing challenges resulting in lower fill rates across markets, said GCPL in its quarterly updates to the stock exchanges.

The company navigated these challenges through agile planning, sourcing and calibrated pricing actions, it added.

“Overall, across the FMCG industry, we have seen an acceleration in value growth with the demand environment remaining

stable, aided by continued momentum across the broader global economy and consumer sentiment holding up despite crude-led input cost inflation,” said the Godrej Industries Group firm.

Against this backdrop, the business delivered a sequential improvement in performance across most metrics.

“At a Consolidated level, we expect to deliver high-teens revenue growth in Q1 FY27, meaningfully ahead of our full-year guidance of double-digit revenue growth, backed by strong high single-digit UVG,” the company said.

Its consolidated Ebitda is also expected to land ahead of our double-digit guidance, although margins will be lower due to exceptional cost pressures.

“Our Standalone business (which is mainly India business) is likely to deliver double-digit revenue growth for the quarter, underpinned by high-single-digit underlying volume growth. Growth has been broad-based across categories,” it said.

GCPL’s Indonesia business, the second biggest after India, recorded a significant improvement, with revenue growth in the mid-teens driven by double-digit volume expansion.

The Godrej Africa, USA and Middle East (GAUM) business also posted another strong quarter, reporting robust double-digit sales growth supported by volume growth in the teens.

On the commodity front, GCPL said input costs remained elevated for most of the quarter but have started easing in the closing weeks.

The company said it continues to address cost pressures through pricing actions, cost-saving programmes and media optimisation measures, and expects margins to improve progressively during the remainder of the fiscal year.

It also raised concerns over the potential impact of El Nino-induced weather volatility on agricultural output and rural demand in some markets. PTI KRH SHM