FMCG quarterly outlook: Weather and input costs hit topline in Q1; GCPL, Dabur, Marico flag mixed margin performance
While sequential demand recovery was visible — particularly in urban markets — earnings remained under pressure across the board.
Godrej Consumer Products Ltd (GCPL) said it expects to post high-single-digit value growth led by volumes, but added that margins from its India business will likely stay below the normative range in Q1FY26. 'Standalone EBITDA margin in Q1FY26 is likely to be below our normative range but is expected to improve,' the company said, quoted PTI.
Marico flagged inflation in key inputs such as copra, worsened by erratic weather. 'Gross margin is expected to be under incremental pressure, on a particularly high base and partly due to the pricing-led high denominator effect,' the company said, while projecting a modest operating profit for the quarter.
Dabur India Ltd said its consolidated revenue is expected to grow in low-single digits, weighed down by its beverages business, which took a hit due to a short summer and unseasonal rainfall.
Its consolidated operating profit growth is also expected to 'marginally lag' revenue growth.
However, Dabur noted strong performances in its home and personal care (HPC) segment, led by brands like Dabur Red Toothpaste, Odonil, Odomos and Gulabari. 'Key brands… are expected to post strong growth coupled with market share gains. Within healthcare, our brands such as Dabur Honey, Hajmola, Honitus and Health Juices are expected to post robust double-digit growth,' it said.
On broader sectoral trends, Marico noted 'consistent demand patterns' with signs of rural recovery and steady urban consumption. 'We expect gradual improvement in the quarters ahead, supported by easing inflation, a favourable monsoon season and policy stimulus,' it said.
Organised trade channels such as e-commerce, modern trade and quick commerce maintained their growth momentum through the quarter, both Marico and Dabur observed.
On the international front, Marico reported high-teen constant currency growth driven by broad-based expansion across most markets. Dabur expects to post 'double-digit constant currency growth' from its global operations.
However, GCPL's international performance was mixed. Its Indonesia business, the company's second-largest market after India, faced intense competitive pricing, likely resulting in flattish volumes. On the other hand, its GAUM (Godrej Africa, USA, Middle East) business is projected to deliver 'strong double-digit value growth and UVG for the second consecutive quarter.'
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
8 hours ago
- Time of India
HC: Talcum powder ad calling other products ‘ordinary' not an insult
Kolkata: Using the word 'sadharan' (ordinary) for other products in a talcum powder advertisement is not an insult to the rival company's product, Calcutta High Court observed on Wednesday while dismissing Emami's "disparagement" claim against Dabur. A division bench of justices Sabyasachi Bhattacharyya and Uday Kumar said: "It is permissible to portray that the advertiser's product is the best in the world. However, what is shunned is the direct or indirect denigration of the product of another manufacturer. Use of the word 'sadharan' in the context of the present advertisement does not speak ill about the product or say that it is inferior as such. It merely projects the respondent's product as extraordinary as compared to others' products, which are said to be 'sadharan' or ordinary. " The court noted that the freedom of commercial speech of Dabur (respondent) and its fundamental right to do business cannot be "throttled" on a vague perception of disparagement, "which is completely illusory" in the present case. You Can Also Check: Kolkata AQI | Weather in Kolkata | Bank Holidays in Kolkata | Public Holidays in Kolkata Emami Limited filed a case against Dabur India Limited for its 'Cool King' advertisement. They claimed that the protagonist in the advertisement is shown carrying a bottle labelled as ordinary, which looked similar to that of their prickly heat powders "Dermi Cool" and "Navratna". In July 2024, Emami filed a case and got a temporary stop order on July 11, 2024, by which Dabur was restrained from showing the disputed bottle. The court also noted that in the advertisement, there was "no mouthing of the name of the appellant's product and the bottle shown is completely different in shape, size and colour from that of the appellant's product". "Even taking into consideration the overreaching sweep of the appellant's products in the market, unless one is an avid follower of advertisements, having nothing better to do, it is improbable that a common target consumer of normal prudence would have such double recall upon viewing the 'offending' advertisement, connecting the present bottle with that of a bottle which was being shown six months back, and to relate the previous bottle with the product of the appellant," the HC held.
&w=3840&q=100)
Business Standard
12 hours ago
- Business Standard
Results preview: Rising rural demand may reflect in FMCG firms' Q1 showing
Dabur, Marico and Godrej Consumer see improved trends; AWL flags muted demand Sharleen Dsouza Mumbai Listen to This Article Fast-moving consumer goods (FMCG) companies are seeing a sequential uptick in volumes and a continued recovery in rural demand, which they have told investors in their quarterly updates before their results. However, AWL Agri Business (formerly known as Adani Wilmar) has pointed out in its update that other than its strategic consolidation of rice operations, it has witnessed muted consumer demand in the quarter. In its update Dabur India said: 'During the quarter, the Indian FMCG sector witnessed a sequential recovery in demand with uptick in volume growth particularly in urban markets.'
Time of India
14 hours ago
- Time of India
FMCG quarterly outlook: Weather and input costs hit topline in Q1; GCPL, Dabur, Marico flag mixed margin performance
Topline growth of India's fast-moving consumer goods (FMCG) players is expected to remain subdued in the June quarter due to macro headwinds including unseasonal rains, a truncated summer season and input cost inflation, companies said in their quarterly updates on Friday. While sequential demand recovery was visible — particularly in urban markets — earnings remained under pressure across the board. Godrej Consumer Products Ltd (GCPL) said it expects to post high-single-digit value growth led by volumes, but added that margins from its India business will likely stay below the normative range in Q1FY26. 'Standalone EBITDA margin in Q1FY26 is likely to be below our normative range but is expected to improve,' the company said, quoted PTI. Marico flagged inflation in key inputs such as copra, worsened by erratic weather. 'Gross margin is expected to be under incremental pressure, on a particularly high base and partly due to the pricing-led high denominator effect,' the company said, while projecting a modest operating profit for the quarter. Dabur India Ltd said its consolidated revenue is expected to grow in low-single digits, weighed down by its beverages business, which took a hit due to a short summer and unseasonal rainfall. Its consolidated operating profit growth is also expected to 'marginally lag' revenue growth. However, Dabur noted strong performances in its home and personal care (HPC) segment, led by brands like Dabur Red Toothpaste, Odonil, Odomos and Gulabari. 'Key brands… are expected to post strong growth coupled with market share gains. Within healthcare, our brands such as Dabur Honey, Hajmola, Honitus and Health Juices are expected to post robust double-digit growth,' it said. On broader sectoral trends, Marico noted 'consistent demand patterns' with signs of rural recovery and steady urban consumption. 'We expect gradual improvement in the quarters ahead, supported by easing inflation, a favourable monsoon season and policy stimulus,' it said. Organised trade channels such as e-commerce, modern trade and quick commerce maintained their growth momentum through the quarter, both Marico and Dabur observed. On the international front, Marico reported high-teen constant currency growth driven by broad-based expansion across most markets. Dabur expects to post 'double-digit constant currency growth' from its global operations. However, GCPL's international performance was mixed. Its Indonesia business, the company's second-largest market after India, faced intense competitive pricing, likely resulting in flattish volumes. On the other hand, its GAUM (Godrej Africa, USA, Middle East) business is projected to deliver 'strong double-digit value growth and UVG for the second consecutive quarter.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
