Page 11 - Fmcgs

FMCG players expect volume trends to sustain as demand rises in rural mkts

Fast-moving consumer goods (FMCG) companies expect to sustain volume growth in the coming quarters, buoyed by recovery of demand in rural markets and good monsoon, despite concerns over growing food inflation. FMCG majors, including HUL, ITC, Dabur, Britannia, Nestle and Emami, in their June quarter earnings have reported 'green shoots' from the rural markets and strong growth from e-commerce channels, particularly from quick-commerce platforms. The industry had around 6.6 per cent volume growth in the April-June period of this fiscal. However, companies are worried about elevated food inflation as coffee and cocoa prices have gone up unprecedently. Amid expectations of an increase in cereals and grains prices, some of the players have even indicated price hikes. Dabur CEO Mohit Malhotra said, "Going forward, the volume will increase on the back of rural inching up for us. So I expect the subsequent quarters to be better than our existing quarters, but definitely not worse." He ...

IMF's Gita Gopinath says India could become 3rd largest economy by 2027

India's growth was much better than IMF expectations the last fiscal year and those carryover effects are affecting our forecast for this year, said Gita Gopinath

Mars, maker of M&M's and Snickers, to buy Kellanova for nearly $30 billion

M&M's maker Mars is buying Kellanova, the maker of Cheez-Its and Pop-Tarts for nearly USD 30 billion, vastly expanding the number of household-name brands under one roof. Kellanova was created last year when the Kellogg Co. split into three companies. Kellanova sells many of the former company's most profitable brands, including Pringles, Eggo, Town House, MorningStar Farms and Rice Krispies Treats. It had net sales of more than USD 13 billion last year and has approximately 23,000 employees. Mars Inc. said Wednesday that it will pay USD 83.50 per share in cash. The company put the total value of the transaction at USD 35.9 billion, including debt. It is the biggest deal in the sector since J.M. Smucker bought Hostess for USD 5.6 billion last year, and among the largest of 2024, coming in second to Exxon Mobil's USD 60 billion acquistion of Pioneer Natural Resources. Mars' purchase of Kellanova is expected to close in the first half of next year. Once it's complete, Kellanova will

From PepsiCo to P&G, India becomes next big FMCG growth bet as China lags

With India's economy expanding at the fastest pace among major emerging markets, companies are trying to serve its diverse palette

FMCG sector growth at 4% in Apr-June on relaxed consumption: NielsenIQ data

Industry growth steady and reflects resilience and adaptability, says consumer research firm NielsenIQ

Shoes in 10-minutes: Footwear major Bata wants to join quick-commerce race

The quick-commerce space is becoming an attractive business opportunity, witnessing increased interest from investors. Big guns like Reliance and Walmart want to enter the sector too

From Dabur to Britannia, FMCG firms begin to see volumes growth revival

Companies expect the trend of rural outpacing urban to continue

Back in biz: Equity investors turn aggressive on red-hot defensive stocks

Most of the rise in the defensive sector weightage in the index has so far been led by pharmaceutical manufacturers but FMCG and IT Services companies out-perform the broader market in July

Adani Wilmar shares jump 10% as Adani Enterprises to demerge food-FMCG biz

With this, the existing shareholders of AEL will hold shares directly in Adani Wilmar

Adani Enterprises board approves demerger of food and FMCG business

Adani Wilmar shares closed at Rs 348.80 per share, up 0.19 per cent on NSE, while Adani Enterprises closed at Rs 3,225.10 per share, up 1.76 per cent

Dabur Q1 result: Net profit rises 8% to Rs 500 cr, net sales at Rs 3,349 cr

'The country's demand environment remains challenging, marked by high food inflation and unemployment rate,' says the FMCG firm

It has been very good quarter, have seen 12% volume growth: Adani Wilmar MD

In volume terms, we will block at least 20-25 per cent growth over last year. Volume wise we should do more than a million tonnes to 1.2 million tonnes, said Angshu Mallick, MD and CEO, Adani Wilmar

FMCG major Colgate-Palmolive receives Rs 248.74 cr tax demand notice

Colgate-Palmolive (India) Ltd has received a tax demand notice of Rs 248.74 crore from the Income Tax Authority in a transfer pricing-related issue. The FMCG major said it will be challenging the order before the appellate tribunal. Colgate-Palmolive India Ltd (CPIL), which operates in oral care and personal care, received notice on July 26, 2024, according to a regulatory filing by the company. The income tax demand is for the financial year ended on March 31, 2021, for transfer pricing-related issues. "The Company has received a Final Assessment Order for Assessment Year (AY) 2020-21 carrying a demand amounting to Rs 248,74,78,511/-," it said. The said demand includes interest amounting to Rs 79.63 crore, CPIL added. "The company will be filing an appeal before the Income Tax Appellate Tribunal against the said order," said CPIL adding "There is no impact on financial operations or any other activities of the Company due to this order." The demand is mainly due to transfer ...

Foods, premium personal care to contribute 25% revenue by FY27: Marico

FMCG major Marico, which is diversifying its portfolio, expects one-fourth of the domestic revenue to come from foods and premium personal care segments in the next two years by 2026-27, according to its annual report. Besides, Marico expects a "gradual uptick" in the growth of its core categories, helped by improving macro-indicators and the forecast of a normal monsoon. It expects "domestic revenue growth to outpace volume growth from Q1FY25, in light of the upward bias in prices of some of the key commodities". Marico's consolidated revenue growth has moved into "positive territory in Q4 and is expected to trend upwards during the course of FY25", said the company which owns brands such as Sffola, Parachute, Hair & Care, Nihar and Livon etc. For the financial year ended on March 31, 2024, Marico's consolidated turnover was at Rs 9,653 crore, down 1 per cent. Its domestic revenue was Rs 7,132 crore, 3 per cent lower than the last year. As per the strategy, the Mariwala ...

Rural volumes likely to overtake urban by FY25-end, says Kantar report

Kantar report says rural growth largely led by rise in population rather than consumption

Godrej Consumer invests over Rs 1,000 crore on advertising in FY24

FMCG major Godrej Consumer's advertising investment shot up by 47 per cent to Rs 1,011 crore in FY24 in the domestic market, even as it has reduced SKUs by around 30 per cent through a rationalisation process. Godrej Consumer Products Ltd (GCPL), which aims for double-digit volume growth, is spending more on brands, automation and SKU rationalisation with a "keen focus on simplification", according to the latest annual report of the company. "In line with our strategy of category development, we have made significant investments in advertising. We were the fifth largest advertiser in India in 2023, from being number 17 in 2021. We are adding to this with investments in distribution," GCPL Managing Director and CEO Sudhir Sitapati said. GCPL's spending on 'Advertising and Publicity' was Rs 1,011 crore for the financial year ended March 2024. This was 47 per cent higher than Rs 687.34 crore a year before. "In India, we are now spending over Rs 1,000 crore in advertising, from Rs 350-

Patanjali Foods Q1 FY25 results: Net profit rises 200% to Rs 263 crore

The company had reported a net profit of Rs 87.8 crore in the year ago period

Budget 2024: FMCG sector seeks more spending in rural areas to push demand

Ahead of the Union Budget, the consumer sector is calling on the govt to enhance both rural and urban infra, create a more business-friendly environment, and prioritise measures to boost demand

FMCG makers expect single-digit revenue growth, margin improvements in Q1

Fast-moving consumer goods companies expect single-digit volume growth along with expansion in margins during the April-June quarter of this fiscal, helped by a revival in rural demand and a stable urban market. Listed FMCG companies such as Dabur, Marico and Adani Wilmar in their latest quarterly updates have reported a "gradual improvement" in demand trends in the April-June quarter, which was on the expected lines. Home-grown FMCG maker Dabur expects to register mid to high single-digit growth in its consolidated revenue, supported by mid-single-digit volume growth in the domestic market. Marico said its consolidated revenue grew in high single digits in the June quarter, while the domestic business posted a "modest uptick in underlying volume growth" on a sequential basis. Adani Wilmar, which sells edible oils and has some play in the food products under Fortune brands, has also reported an overall 13 per cent volume growth in the June quarter. Its food and FMCG business volum

FMCG sector to see 7-9% revenue growth this fiscal: CRISIL Ratings

The fast-moving consumer goods (FMCG) sector is expected to see revenue growth of 7-9 per cent this fiscal, according to a report released by CRISIL Ratings on Saturday. The expected revenue increase this financial year (2024-25) will be supported by higher volume growth on the back of a revival in rural and steady urban demand. The estimated growth of the FMCG sector in 2023-24 was 5-7 per cent. The report said product realisation is expected to grow in single digits with a marginal rise in prices of key raw materials for the food and beverage (F&B) segment. However, the prices of key raw materials for the personal care and home care segments are likely to be stable. CRISIL Ratings Director Rabindra Verma said, "Revenue growth will vary across product segments and firms. The F&B segment is expected to grow 8-9 per cent this fiscal, aided by improving rural demand. The personal care segment is likely to grow by 6-7 per cent, and the home care by 8-9 per cent." The FMCG players