Weak demand to keep revenue growth of FMCG firms muted
Financial Express Bengaluru|January 04, 2025
Analysts see slower volume growth from weak urban demand
RAGHAV AGGARWAL

FAST-MOVING CONSUMER goods (FMCG) companies may report low-single-digit revenue growth in the December quarter of FY25 owing to sluggish urban demand and persistently high input costs, analysts as well as companies said.

"We expect volume growth deceleration across the board, given the slowing urban demand and a gradual rural recovery," analysts at Kotak Institutional Equities wrote. "Volume growth is likely to be in low-to-mid single digit for most companies," analysts at Nuvama Institutional Equities said.

In its quarterly update released on Friday, Dabur India said it expects a flattish operating profit growth in Q3. Marico said it expects a higher-than-anticipated gross margin contraction on a year-on-year basis and a modest operating profit growth in Q3.

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