Godrej Consumer Products says Argentine Peso devaluation to have negative mid-single digit impact on sales

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Godrej Consumer Products said in a stock exchange filing on Friday. Also Read: Currency headwinds to spoil Godrej Consumer Products' Dec quarter show As per IndAS 29, all amounts need to be restated into the measuring unit current at the end of the reporting period by applying a general price index. As the Argentinian economy is facing hyperinflationary pressures, accounting regulations require the YTD Statement of Profit and Loss to be translated at the closing rate for presentation in Consolidated Financial Statements, it added.

Hence, the impact of the devaluation of the Argentine Peso of the financial statement for 9MFY24 has been recorded in the 3QFY24. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) “This has resulted in a negative mid-single digit impact on consolidated sales performance in 3QFY24," Godrej Consumer said. Further, the profitability of the Latin America and SAARC business has been flat in 1HFY24.

Hence, the overall impact of devaluation on profitability remains minimal, the FMCG major added. In its business update for the quarter ended December 2023, Godrej Consumer had said it expects to see a low-single-digit sales decline in rupee terms at a consolidated level. On a consolidated level (organic), the FMCG company expects to deliver mid-single digit volume growth in the third quarter of FY23.