Sudhir Sitapati, managing director and chief executive officer, said the company delivered a “weak” performance in the fourth quarter, driven entirely by pricing.
While successive price hikes taken to offset pressure on margin impacted volumes during the quarter, Sitapati expects volume growth will return in the medium term. This would be driven by the relatively non-discretionary, mass pricing of its portfolio and continuous market share gains, he said.
During the quarter, the company had gained share in 85% of its categories.
Godrej Consumer said it saw the personal care segment grow 18%, while home care declined 7%.
Another short-term concern, according to the company, is the performance of Indonesia business. Revenue declined primarily with hygiene sales, which has a large comparator in base, waning after Covid-19. “While the short term may continue to remain challenging, we are putting building blocks in place to drive category development and general trade distribution to ensure gradual recovery in the medium term.”
In its quarterly update, Sitapati has said that it expects the company to deliver double-digit sales growth in FY23.
Shares of the Godrej Consumer closed 4.19% lower on Thursday before the results were announced against a 2.65% loss in the benchmark Nifty 50. The stock has fallen 16.9% year-to-date.