Explore Business Standard
Leading FMCG makers are expecting a low to mid-single-digit volume growth in the October-December quarter, with an improvement in consumer demand on a sequential basis. Consumer demand from the rural market is lagging, though the urban markets stayed steady in the third quarter as exhibited in the September quarter, said leading listed FMCG firms such as Dabur, Marico and Godrej Consumer Products in their quarterly updates. Companies are optimistic of a gradual uptick as early signs of revival in consumption are visible with improving trends in volumes. Besides, the makers also expect expansion in the gross margins on a year-on-year basis helped by moderating inflation as prices of key inputs such as copra and edible oil prices remained at lower levels and crude derivatives also exhibited some downward bias. This will help FMCG makers channelise more funds towards advertising and promotions. "A significant portion of gross margin expansion will be channelled into enhancing adverti
Helped by encouraging macro indicators, FMCG consumption is showing improvement year-on-year, though the recovery has been gradual, Dabur India said in its quarter updates. This quarter witnessed a mild summer and a slightly deficient monsoon. The festive season is later than normal this year due to which offtake related to festivals is delayed and will carry forward to the next quarter, it said. "We expect recovery of consumption in both urban and rural markets in India due to improving macro indicators, increase in government expenditure and positive consumer sentiment," Dabur said. The homegrown FMCG major expects a "mid to high single-digit growth" in its consolidated revenue during the July-September quarter. "In India business, Healthcare and HPC segments are expected to grow in high single-digit," it said in an update for the quarter ending on September 30, 2023. However, it anticipates the F&B business to remain "slightly below last year's revenue" on account of a mild ...