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Time of India
04-07-2025
- Business
- 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
Mint
04-07-2025
- Business
- Mint
FMCG makers see weather impact on topline growth in June quarter
New Delhi, Jul 4 (PTI) Fast-moving consumer goods (FMCG) makers are expecting their topline growth to be impacted in June quarter due to headwinds like unseasonal rains, a brief span of summer and inflation pressure on key inputs. However, the FMCG industry witnessed a sequential recovery in demand during the quarter, with an uptick in volume growth, particularly in urban markets. Margins of FMCG majors such as Marico, Dabur, and Godrej Consumer remained below the normative level and they expect a low-single-digit volume growth in the April-June period. Godrej Consumer Products expects its margin from the India business to stay below the 'normative range' in the June quarter, but is likely to deliver high-single-digit value growth aided by volume expansion. The company's volume growth, in its standalone business, has been strongly competitive and is sequentially improving, said the Godrej Industries Group FMCG arm in its quarterly updates. "Standalone EBITDA margin in Q1FY26 is likely to be below our normative range but is expected to improve," said Godrej Consumer Products Ltd (GCPL). Dabur's consolidated revenue in the June quarter is expected to grow in low-single digits on account of a decline in beverages, which was impacted during the quarter due to unseasonal rains and a short summer. Its "consolidated operating profit growth is expected to marginally lag revenue growth," said Dabur in its updates for the June quarter. However, Dabur's home and personal care (HPC) division is expected to perform well, driven by the oral, home and skin care categories. "Key brands such as Dabur Red Toothpaste, Odonil, Odomos, and Gulabari are expected to post strong growth coupled with market share healthcare our brands such as Dabur Honey, Hajmola, Dabur Honitus, and Dabur Health Juices are expected to post robust double-digit growth," said Dabur. Similarly Marico expects a 'modest operating profit' in the June quarter as it continued to witness sequential inflation in some key raw material inputs as copra, which was further heightened by unseasonal rainfall patterns. Vegetable oil prices eased following the cut in import duty by the government and crude oil derivatives remained range-bound, it added. Gross margin is expected to be under "incremental pressure, on a particularly high base and partly due to the pricing-led high denominator effect, said Marico which owns brands such as Saffola, Parachute, Hair & Care, Nihar and Livon etc. About the sector, Marico said it witnessed a "consistent demand pattern" in the June quarter, with improvement from the rural market. "During the quarter, the sector exhibited consistent demand patterns, marked by improving trends in rural markets and steady urban sentiment. We expect gradual improvement in the quarters ahead, supported by easing inflation, a favourable monsoon season and policy stimulus," said Marico. In terms of channels, organised trade including e-commerce, quick commerce and modern trade maintained their growth momentum during the quarter. About international business, Dabur said it expects to post 'double digit constant currency growth', while Marico said it delivered high-teen constant currency growth, driven by broad-based growth across most market. Godrej Consumer faced challenges in Indonesia, the second biggest market of the company after India. It had a significant increase in competitive pricing action across all major categories, which will likely result in "flattish" volume growth. "GAUM (Godrej Africa, USA, and Middle East) business is likely to deliver strong double-digit value growth and UVG for the second consecutive quarter. Profit growth continues to be healthy," it said.
