FMCG companies expect single-digit revenue growth in the April-June quarter

New Delhi. Fast moving consumer goods (FMCG) companies expect margin improvement during the April-June quarter of the current financial year. Also, these companies have forecast single-digit revenue growth, helped by improving rural demand and stable urban market. Listed FMCG companies like Dabur, Marico and Adani Wilmar said in their latest quarterly information that there was a sequential improvement in demand in the April-June quarter, which is in line with expectations. Domestic FMCG maker Dabur expects mid-single-digit sales growth in the domestic market and consolidated revenue growth in mid to high single digits.

Marico said its consolidated revenue grew in high single digits in the June quarter, while the domestic business posted a marginal rise on a sequential basis. Adani Wilmar also reported a 13 per cent overall revenue growth in the June quarter. The company said sales of its food and FMCG business grew 23 per cent year-on-year. Manufacturers expect margins to also expand year-on-year, driven by soft commodity prices and cost-saving initiatives.

Dabur said commodity prices remained stable during the quarter. Some expansion in gross margin is expected due to cost-saving initiatives. Marico also expects gross margin to expand on a year-on-year basis. The company owns brands such as Saffola, Parachute, Hair & Care, Nihar and Livon. On rural market sales, Dabur said it saw a sequential improvement in demand trends in the June quarter and growth from those regions accelerated.

Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.

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