7/14/22, 12:41 PM gcpl: Inflation continued to 'hit hard' FMCG industry in June quarter: GCPL - The Economic Times

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Business News › Industry › Cons. Products › FMCG › Inflation continued to 'hit hard' FMCG industry in June quarter: GCPL

Inflation continued to 'hit hard' FMCG industry in

June quarter: GCPL
PTI Last Updated: Jul 06, 2022, 04:48 PM IST
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Synopsis

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GCPL expects to deliver early double-digit sales growth on a high base in India and the

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growth will be mostly "price-driven".

The country's FMCG industry

Agencies

continued to be "hit hard by inflation Bajaj

Finance
levels" leading to successive price hikes
as well as impacting volumes during
the three months ended June,

Fixed
according to
Godrej Consumer Products Ltd
NSE 0.14 % (GCPL). In its update for

Deposit
During the fourth quarter of FY22, the ₹12,000-
crore GCPL delivered price-led growth of 7% year- the first quarter of the current fiscal,
on year, even as India volume declined 3%, amid
continued input cost pressure. the leading FMCG player also said that
rural markets witnessed slower growth
compared to urban markets during the period.

Bajaj Finance

GCPL expects to deliver early double-digit sales growth on a high base in India
and the growth will be mostly "price-driven".

The company would have "mid-single-digit volumes drop on a high base, with Book Now
a 3-year volume CAGR close to mid-single digits," in the domestic market, as
per the update.
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7/14/22, 12:41 PM gcpl: Inflation continued to 'hit hard' FMCG industry in June quarter: GCPL - The Economic Times

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"The Indian FMCG industry continued to remain soft during the quarter. It
continued to be hit hard by inflation levels aggravating due to geopolitical
tensions, leading to successive price increases and impacting volumes," GCPL
said.

In recent months, inflation has been on the rise in most of the markets
worldwide.

Among the international markets, GCPL said that in Indonesia, which is the
company's second-largest market after India, also faced an impact on TOP TRENDING INDUSTRY TERMS
consumption and margins.
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"In Indonesia, with hygiene performance waning after COVID-19 and a large
hygiene comparator in base, we expect a high single-digit sales decline. The
sales performance excluding hygiene was largely flat," it said. Most Popular News

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GCPL said that it is putting building blocks in place to drive category
giant
development and general trade distribution to ensure gradual recovery in the
medium term.

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"In Godrej Africa, USA, and the Middle East, we continued our growth in hard currency

momentum across most of our key countries of operations. We expect to

deliver double-digit sales growth, with a continued focus on driving 3. EHL’s new Master’s in
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Further, it expects a constant currency sales growth in the high teens in Latin
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"At a consolidated level, we continue to leverage our category and geographic volumes come down

portfolio. We expect to deliver high single-digit sales growth and a 3-year

CAGR in double-digits," the company said. 5. Adani vs Ambani: Are India’s
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With respect to profitability in the June quarter, GCPL expects lower year-on-
year EBITDA (Earnings Before Interest Tax Deprecoatopm amd Amortisation)
margins.

"This is due to input inflation, upfront marketing investments to drive

category development and weak performance in Indonesia," GCPL said.

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