Page 8 - Fmcg

FMCG firms expect volume-led growth in FY25 with improvement in revenue

Leading FMCG makers expect a volume-led growth in FY25, with a revival in consumption supported by a lower inflationary environment, projections of a normal monsoon and good rabi crop. Companies such as Britannia, Marico, Dabur, GCPL and HUL in their latest March quarter earnings also expect a revenue growth in the new financial year as the deflationary cycle is over. The companies were forced to slash prices as prices of major commodities had fallen, which had in turn impacted their topline and value growth in the last two quarters of FY24. Besides, they expect a gradual uptick from the rural market, which contributes over one-third FMCG sales in the country. For Dabur a volume growth will be the way forward in this fiscal, said its CEO Mohit Malhotra in an investor call. He remains optimistic of the gradual uptick in consumption trends in FY25 and expects a mid-to-high single digit volume growth considering a normal monsoon, improving macroeconomic indicators, government spendi

Our bolt-on value-accretive M&A strategy will be deployed: HUL CFO

Ritesh Tiwari talks about the company bringing more Unilever brands to India

Bajaj Consumer Care Q4 results: Net profit slips 12% to Rs 35.58 crore

FMCG firm Bajaj Consumer Care Ltd on Wednesday reported a 12 per cent decline in consolidated net profit to Rs 35.58 crore for the fourth quarter ended March 2024. The company had posted a consolidated net profit of Rs 40.46 crore in the same quarter of the previous fiscal, Bajaj Consumer Care said in a regulatory filing. Its consolidated total revenue from operations during the quarter under review stood at Rs 239.96 crore against Rs 249.42 crore in the year-ago period, it added. The company's total expenses declined to Rs 208.08 crore in the fourth quarter from Rs 210.33 crore a year ago. For the fiscal ended March 2024, its consolidated net profit was higher at Rs 155.43 crore compared to Rs 139.22 crore in FY23, the company said. In FY24, the consolidated total revenue from operations stood at Rs 984.12 crore against Rs 960.87 crore in the preceding fiscal, it added. Bajaj Consumer Care said its board of directors at its meeting held on Wednesday considered and approved the .

After 5 quarters, rural FMCG consumption outpaces urban: NIQ report

While there is a consumption slowdown in urban markets and modern trade channels, rural markets and traditional trade registered an uptick, said NIQ

New plastic management rules will impact FMCG companies: Analysts

India is the third-largest plastic producer globally. While these new norms will put India ahead in the global league, they will also impact packaging costs for consumer companies

Patanjali Foods to evaluate offer to buy Patanjali Ayurved's non-food biz

Patanjali Foods Ltd, which is mainly into edible oils, on Friday said it will evaluate a proposal to acquire the non-food business of promoter group Patanjali Ayurved, led by Baba Ramdev. In a regulatory filing, Patanjali Foods informed that its board has discussed the initial proposal received from Patanjali Ayurved Ltd for a sale of the latter's non-food business undertaking to the company. "The board accorded its in-principle approval for evaluating the most efficient mode of enhancing synergies with Patanjali Ayurved non-food portfolio in any manner on an arm's length basis," the filing said. The board also authorised officials to carry out due diligence, appoint professionals, negotiate the terms and conditions of the proposal, and report the findings to the Audit Committee and the board for further consideration. To strengthen its product portfolio, Patanjali Foods acquired the biscuits business of Patanjali Natural Biscuits Pvt Ltd for Rs 60.03 crore in May 2021. The compan

ITC plans to open more hotels overseas with West Asia in focus: CMD Puri

India's diversified entity ITC plans to open more hotels overseas with neighbouring countries and the Middle East as primary target markets after opening of its first international property here, company Chairman and Managing Director Sanjiv Puri said on Thursday. The company's arm ITC Hotels, which had opened 22 new properties in the last 24 months, plans to add another 70 hotels in the next five years in India as part of expansion plans in the hospitality sector. Besides the hotels business, the company will look for opportunities to expand the presence of FMCG and other verticals in new overseas markets as well. "We are open to exploring opportunities that come about. I think we have strong credentials in hospitality which we can take outside India now. Very clearly at the moment the focus is on proximal markets, be it for hospitality, be it for FMCG...," Puri said here at a press conference after the opening of the 352-room luxury property, ITC Ratnadipa here. He said as the .

HUL Q4 result: Net profit slips 1.6% to Rs 2,558 cr, demand pickup expected

"We believe that the market is slowly returning to normal. If macros and monsoons do help the agri economy...then that will also add to the change," said Jawa

Supreme Court's whip in Patanjali case a wake-up call for the FMCG sector

Advertising professionals believe that the Supreme Court's action against Patanjali would serve as a deterrent for other brands

Supreme Court expands scrutiny to FMCG after Patanjali misleading ads case

Nestle, Bournvita, and MDH have all come under public scrutiny after reports questioning the quality of the consumer goods emerged within the last month

Global investors sell Unilever India stock as sales growth falters

The decline in Hindustan Unilever shares this year has helped improve its multiples. The stock is currently trading at 46 times its forward earnings, below its five-year average of about 54 times

P&G raises annual core profit forecast on resilient demand, price hikes

Even as P&G raised prices of its products over the last two years, demand for its daily-use items such as big name brands Tide and Pampers has held steady

Marico expects uptick in growth of core categories via ongoing initiatives

Homegrown FMCG major Marico Ltd on Friday said it expects a gradual uptick in the growth of its core categories through ongoing initiatives to enhance the profitability of general trade channel partners and investments towards expansion in footprint across urban and rural outlets over the next couple of years. In its quarterly update on the BSE, Marico said in the fourth quarter of FY24 FMCG demand sentiment stayed consistent vis-a-vis the preceding quarters with trends in urban and rural consumption largely converging. In the fourth quarter consolidated revenue grew in low single digits, moving back into positive territory after three quarters, the company said, adding that it expects a "low double-digit operating profit growth on the back of a healthy expansion in the operating margin". "In Q4, the domestic business posted a slight uptick in volume growth on a sequential basis owing to steadying trends in the majority of the portfolios," the company said. Amidst the backdrop of .

FMCG companies to face Q4 volume pressure amid sluggish rural demand

Analysts say rural demand stagnates while urban areas drive low to mid-single-digit volume growth, posing challenges for the sector

Bambrew raises Rs 60 crore in Series A funding from Blume Ventures

The funding will fuel the startup's expansion into eco-friendly packaging for FMCG, F&B, manufacturing and R&D team development

Growing interest: FMCG, telcos on foreign portfolio investors hot list

Analysts said large part of the flows into the FMCG sector were due to the block deal in ITC, where the British American Tobacco (BAT) sold a 3.5 per cent stake for around Rs 17,000 crore

Further correction could make the FMCG sector valuations attractive

FMCG growth is tied to semi-urban and rural demand. Metro and large city demand is almost saturated. Growth comes from smaller places

Nykaa has huge lead, edge over its competitors: Founder Falguni Nayar

Fashion and beauty retailer Nykaa hopes to actively defend its turf amid competition from Indian conglomerates and new players, as it stacks up strongly with a huge lead and advantage of brand play, customer base and business insights, founder and CEO Falguni Nayar has said. Nayar told PTI in an interview that retail is a "very big segment with space for many" and added that the omnichannel beauty and fashion retailer will stay focused with offerings that are far beyond consumers' expectations so that they do not have a reason to move to competition. The comments assume significance in the backdrop of stiff competition unfolding in India's rapidly-growing beauty ecommerce space. Reliance Retail has launched an omni-channel beauty retail platform, Tira, raising the competitive heat in the booming beauty and personal care marketplace that has players like Nykaa, new entrant Tata Cliq Palette, Myntra and others. Nayar said Nykaa has helped the beauty segment grow from a "small niche .

P&G India appoints Kumar Venkatasubramanian as CEO with effect from May 1

Leading FMCG maker P&G India on Monday announced the appointment of Kumar Venkatasubramanian as CEO, with effect from May 1, 2024. The current CEO, L V Vaidyanathan will leave the company to pursue personal interests after 28 years of service, a statement from P&G India said. Kumar is currently leading the P&G business in Australia and New Zealand as CEO. Before the Australia role, Kumar was leading sales team in P&G India until 2020, it added. Kumar, an alumnus of IIM Calcutta started his journey with P&G in 2000 in sales team in India, straight from the campus. P&G owns popular brands such as Ariel, Gillette, Head & Shoulders, Oral-B, Pampers, Pantene, Tide, Vicks and Whisper. P&G President, Asia Pacific, Middle East, and Africa Stanislav Vecera said:"The India business and people will immensely benefit from his (Kumar's)leadership and vision, and collectively I am certain they will take the India business to new heights while maintaining a balanced ..

Largest Australian delegation attending India food industry fair: Official

Australian food brands seek a market of 25-30 million people in India's Tier-I and Tier-II cities, he says