After studying law I vectored towards journalism by accident and it's the only job I've done since. It's a job that has taken me on a private jet to Jaisalmer - where I wrote India's first feature on fractional ownership of business jets - to the badlands of west UP where India's sugar economy is inextricably now tied to politics. I'm a big fan of new business models and crafty entrepreneurs. Fortunately for me, there are plenty of those in Asia at the moment.
Godrej Consumer Products reported a weak set of quarterly results in the June-ended quarter as retailers went slow on purchases ahead of the roll out of the Goods and Services Tax (GST). The company, in a press statement, said it expects the situation to normalise soon and demand would recover in the present quarter.
Net sales in the first quarter of FY18 were up 3.5 percent to Rs 2,271 crore which was lower than the 6 percent growth the company had clocked in earlier quarters. At Rs 225 crore, net profit was down 8.9 percent when compared to the same period last year, according to a statement by the company.
“We had a mixed performance in the first quarter of fiscal year 2018, but are confident that we are putting the right building blocks in place to deliver stronger results in the quarters ahead,” Nisaba Godrej, executive chairperson, Godrej Consumer Products said. She took charge as the executive chairperson of Godrej Consumer Products in May this year.
The company said that household insecticides had a relatively soft quarter, with a primary sales growth of 4 percent. Soaps delivered strong growth, with a primary sales growth of 7 percent.
Godrej Consumer, which sells hair care and personal wash products and household insecticides across Asia, Africa and South America faced headwinds outside India as well. For instance, in Indonesia constant currency sales were down 4 percent (11 percent when adjusted for promotion spends) and in Chile, sales declined by double digits offsetting a similar growth in Argentina.
The company’s international business grew by 11 percent on a constant currency basis. The Africa cluster continued to perform well with 26 percent constant currency growth, the company said in its press statement.
The results announced during market hours saw the stock react instantly. It slid one percent initially and ended the day down 2 percent at Rs 1,034 apiece at the BSE.