FMCG companies expect growth to slow in Q3 – Newz9

NEW DELHI: Hit by inflation, larger enter prices and pricing measures, FMCG companies are anticipated to see a contraction in their gross margin and a modest-to-flat working revenue in the Dec quarter. Several FMCG makers are seemingly to log a low single-digit rise in their income, returning to the cycle of worth-pushed growth.
One of the explanations could possibly be that quite a few companies have opted for a worth hike in the Dec quarter due to rising prices of inputs reminiscent of copra, vegetable oil, and palm oil. The worth hikes got here at a time when the city market was dragged down by lowered consumption due to excessive meals inflation. However, the agricultural market, which is barely above one-third of the full FMCG market, stayed forward of it.
Some listed FMCG companies, reminiscent of Dabur and Marico, shared their updates for the third quarter of FY25, and analysts expect both flat or low single-digit quantity growth. Home-grown agency Dabur expects a “low single-digit growth” in the Dec quarter together with a “flattish operating profit” because it confronted inflationary headwinds in a few of the segments. companies