BENGALURU (Reuters) -India's Godrej Consumer Products Ltd on Wednesday estimated its sales grew in double digits in the fourth quarter, led by strong domestic demand for its home and personal care products. The company's India business, which contributed over 55% of its overall revenue in the last quarter, had "exceeded" expectations, while in Indonesia, it was recovering gradually. Growth in its Africa and United States markets, however, has slowed.The Cinthol soap and Goodknight mosquito repellent maker said profits should "improve" as the gross margin has recovered and continued marketing investments are translating into a "strong double-digit" growth in earnings before interest, taxes, depreciation, and amortisation.
Indian consumer goods companies are seeing some benefits from easing commodity costs. Parachute coconut oil maker Marico on Monday forecast stronger margins for the fourth quarter.
The last time Godrej Consumer Products posted a double-digit growth in revenue was in the quarter ending June 2021. Godrej's Indonesia business, which accounted for about 14% of its overall revenue in fiscal 2022, is seeing a gradual recovery with mid-single-digit constant currency sales growth, it said. However, its Africa, United States, and Middle East markets witnessed a temporary pause in its double-digit sales growth momentum, and posted a higher than mid-single-digit growth in constant currency terms, the company said.
(Reporting by Nishit Navin in Bengaluru; Editing by Sohini Goswami)
