Decline in volume, revenue growth drags FMCG players

The slowdown in private consumption in the economy is taking a toll on the growth of fast-moving consumer goods (FMCG).

-  KRISHNA KANT

The net sales growth of listed FMCG companies hit a 14-quarter low of 2.5 percent 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 percent Y-o-Y decline in combined net sales owing to the lockdown.

The companies' combined net sales inched up to ₹57,604 crore in Q3FY24, up from the ₹56,203 crore in Q3FY23 and ₹56,921 crore in Q2FY24.

The companies reported a slowdown in revenue growth in Q3FY24 despite a low base during the same quarter a year ago.

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

The analysis is based on a common sample of 20 FMCG companies that have declared their Q3FY24 results so far. The sample includes key industry players such as Hindustan Unilever, ITC, Asian Paints, Dabur India, Godrej Consumer, Marico, Colgate-Palmolive, P&G Hygiene, Gillette India, and Jyothy Labs.