Godrej Consumer Products ($ GCPL)

- Soft demand trends - Slowdown of staples consumption and delayed summer an impact

- Continued focus on innovations and enhancements to go-to-market model.

- Standalone profit before tax of Rs 386 crore in the quarter on revenues of Rs1325 crore - remained flat compared to Rs 1329 crore a year ago

Demand Trends. Overall over the last 2-3 quarters, consumption has been weak, more of the same in last 2-3 months. Focus is on driving volume growth. In Q1F20, GCPL saw uptick in volumes helped by new launches, price promotions and retail level execution. The momentum in Q1 should continue going ahead.

Market share gains in soaps continue with new variant launches, better retail execution, prudent promotions and expanded distribution reach.

Innovation Intensity to step up. Expect to have multiple new launches in the next few months which should help the growth rates.

Distribution dynamics. E-Commerce accounts of ~2% of domestic sales and is growing at a rapid pace. GCPL introducing relevant pack sizes for Modern Trade/E-Commerce

Indonesia operations. Expect low double digit revenue growth and profit margins stable to improving.

Africa operations. Operational performance has been subdued - While Nigeria and Kenya are doing better, underperformance in South Africa and challenges in Ethiopia, Angola are weighing on overall growth rates.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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