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Nigeria devaluation impact on reported numbers
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Godrej Consumer Products Limited — Q1 FY24
Godrej Consumer Products delivered a strong Q1 FY2024, with consolidated organic UVG of 8% and constant currency sales growth of 13%, ahead of expectations despite tough market conditions.
bullish
high
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Godrej Consumer Products delivered a strong Q1 FY2024, with consolidated organic UVG of 8% and constant currency sales growth of 13%, ahead of expectations despite tough market conditions. India organic UVG was 10% with EBITDA growth of ~32%, driven by a soft competitor in soaps, a good HI season, and market development investments. Indonesia saw 12% volume growth and 53% EBITDA growth, with modern trade stocks reduced from 95 to 58 days. The Nigeria devaluation will optically impact INR sales growth by ~200bps, but management expects to pass on costs and maintain profitability. The company plans INR 900 crore organic CapEx in India over 18-36 months for volume growth and automation. Risks include sustained demand weakness in India and potential further naira depreciation.
गोदरेज कंज्यूमर प्रोडक्ट्स ने पहली तिमाही में अच्छा प्रदर्शन किया। कंपनी की बिक्री पिछले साल से 13% बढ़ी, जो उम्मीद से बेहतर है। भारत में बिक्री 10% बढ़ी और मुनाफा 32% बढ़ा, क्योंकि साबुन में प्रतियोगी कमजोर था और कीटनाशकों का अच्छा सीजन रहा। इंडोनेशिया में बिक्री 12% और मुनाफा 53% बढ़ा। नाइजीरिया में मुद्रा के कमजोर होने से भारतीय रुपये में बिक्री पर 2% का असर पड़ेगा, लेकिन कंपनी लागत बढ़ाकर मुनाफा बनाए रखेगी। कंपनी भारत में 900 करोड़ रुपये निवेश करेगी। जोखिम: भारत में कमजोर मांग और नाइजीरिया की मुद्रा में और गिरावट।
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India Organic UVG
10%
+10pp YoY
India organic volume growth was 10% in Q1 FY24, driven by market development and a soft competitor.
Indonesia Volume Growth
12%
+12pp YoY
Indonesia volume grew 12% despite modern trade downstocking, with EBITDA up 53%.
Modern Trade Stock Days (Indonesia)
58 days
-37 days YoY
Stocks in modern trade reduced from 95 days to 58 days, improving working capital.
Working Media Spend (India)
+68% YoY
+68pp YoY
India working media increased 68% YoY, supporting category development and brand investment.
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Guidance and risk preview
Management expects to pass on cost increases from naira devaluation (NGN 650 to 750) to consumers, keeping EBITDA plus Forex loss line intact.
The naira devaluation from NGN 450 to 750 per USD will optically reduce INR sales growth by ~200bps and complicate P&L reading, though management e...
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