Q3 results: Decline in volume, revenue growth drags FMCG companies

Their combined net sales were up just 7.4 per cent year-on-year (Y-o-Y) in Q3FY23, which was the lowest in nine quarters then

The slowdown in private consumption in the economy is taking a toll on the growth of fast-moving consumer goods (FMCG). The net sales growth of listed FMCG companies hit a 14-quarter low of 2.5 per cent in October-December 2023 (Q3FY24).

This is the lowest revenue growth for the industry since the June 2020 quarter, when the FMCG firms in the Business Standard sample had reported a 13.2 per cent Y-o-Y decline in combined net sales owing to the lockdown.    

The companies’ combined net sales inched up to Rs 57,604 crore in Q3FY24, up from the Rs 56,203 crore in Q3FY23 and