The quarterly updates of fast-moving consumer goods (FMCG) companies, which has been released so far for the January-March 2025 period (Q4FY25), present a mixed picture of the sector at a time when urban demand has remained weak. Rural demand, in contrast, has been resilient and is expected to improve in the coming months.
While Marico in its Q4 update on Thursday said it saw a sequential uptick in volume growth for its domestic business, aiding consolidated revenue growth, Dabur, which has a strong rural bias, said it saw a mid-single-digit decline in its India business for the period. Both firms derive around 75% of their consolidated revenue from domestic operations.
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The Ghaziabad-headquartered company said that overall FMCG trends were subdued in Q4, though Marico said that demand trends were stable during the quarter. Stocks of Dabur and Marico showed a contrast in performance on the bourses on Thursday. While shares of Dabur closed down 6% on the BSE at Rs 465.60 apiece, Marico’s stock price closed marginally up at 0.66% a share, at Rs 660.70.
On Wednesday, global brokerage Nomura said that it saw demand for FMCG companies remaining unchanged in the March quarter after weakness seen through much of FY25. FMCG sales were expected to grow 5.2% on account of price hikes and volume growth was expected to remain stable, Nomura said. The brokerage also said that it expected inflation to moderate going forward, which would help urban demand to recover gradually.
Dabur, which makes brands such as Dabur Chawanprash, Dabur Honey and Dabur Lal Tel, attributed its weak Q4 performance to delayed and truncated winters, among other factors. Dabur’s foods business, which includes brands Hommade and Badshah, however, would buck the trend, the firm said, delivering double-digit growth during the quarter.
“Due to the impact of inflation coupled with operating deleverage, we anticipate Q4 operating profit margin to contract by around 150-175 basis points year-on-year. Consolidated revenue is expected to be flattish during the quarter,” Dabur said.
Marico, on the other hand, has remained bullish about the market, adding it expected to maintain double-digit revenue growth momentum in FY26. The maker of Parachute and Saffola, however, did flag inflationary concerns,
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