New Delhi, Oct 5 (PTI) FMCG major Godrej Consumer Products Ltd (GCPL) on Tuesday said it expects to deliver "high single-digit sales growth" on a consolidated basis in the July-September period.

During the quarter, demand trends in categories across the key countries it operates in remained steady, it added.

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However, GCPL expects its operating margins to contract during the quarter, driven by a lag between the rise in input costs and increase in end consumer pricing, the Godrej group firm said in its quarterly update.

"At a consolidated level, we continue to leverage our category and geographic portfolio well and expect to deliver high single-digit sales growth with another quarter of double-digit 2-year CAGR," it said.

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In the domestic market, GCPL expects "close to a double-digit sales growth" driven largely by volume growth and calibrated price increases.

"We expect our 2-year CAGR to be in the double digits," the company said. "We witnessed broad-based sales growth in our Home Care and Personal Care categories."

Talking about Indonesia, its second-largest market after India, GCPL said it expect a "marginal decline" in constant currency sales.

"This is impacted by challenging macroeconomic variables, a gradual recovery in the Air Fresheners category, and high competitive intensity in the Wet Wipes category. We continue to put building blocks in place to ensure gradual recovery, during the course of the year," it noted.

In Africa, US and the Middle East, growth momentum continued across most of its key countries of operations.

"We expect to deliver constant currency sales growth in mid-teens. Here too, we expect our 2-year CAGR to be in the double digits. We continue our focus on driving sustainable, profitable sales growth. We expect sales growth in our Latin America and SAARC businesses to be soft," it said.

GCPL's quarterly update provides an overall summary of the operating performance and demand trends during the quarter ended September 30, 2021.

This will be followed by a detailed performance update post the approval of the Q2 FY22 financial results by the board.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)