Feeling the heat: FMCG revenues to take 6% hit due to note ban

Double-digit fall in volumes seen, profit to fall 10% on lower offtake, rising commodity prices

Revenue of major fast moving consumer goods (FMCG) companies is estimated to fall by six per cent in the December quarter over a year before, due to demonetisation.

With lack of liquidity leading to lower offtake, they could see a double-digit decline in volume sales during the three months, analysts said.

The impact would also be at their bottom lines, as analysts estimate net profit would fall by 9.8 per cent for major companies. Apart from lower sales, rising commodity prices and postponement of price increases have taken a toll on their profitability in the quarter.

Lower advertisement and promotional (A&P) expenses might