FMCG cos may report low-to-mid single-digit volume growth in Q4

livemint.com:

Marico said FMCG demand sentiment stayed consistent vis-à-vis the preceding quarters with trends in urban and rural consumption largely converging. The company is anticipating a “slight uptick" in volumes in its fourth quarter India business. In the December quarter, Marico had reported a 2% jump in quarterly volumes in India.

“In Q4FY24, the domestic business posted a slight uptick in volume growth on a sequential basis owing to steadying trends in the majority of the portfolios," the company said in a filing to the exchanges. The volume of Parachute Coconut Oil grew in low single digits as Marico saw a continuing revival in loose to branded conversions amidst firming up of copra prices, which was along expected lines. Saffola oils’ volume grew in mid single digits as trade-led headwinds subsided with stable input and consumer prices.

Consolidated revenue grew in low single digits, moving back into positive territory after three quarters, due to incremental anniversarizaton of pricing cuts in key domestic portfolios, the company said. “We expect consolidated revenue growth to trend upwards, with domestic revenue growth outpacing volume growth in the quarters ahead," according to the company’s Q4 update. During the quarter, copra prices increased, while edible oil and crude oil derivatives remained stable.

This could aid "strong" gross margin expansion on a year-on-year basis for the company. On Friday, Godrej Consumer Products Ltd said it expects to deliver high-single digit underling volume growth in the March quarter. "Operating conditions in India continue to remain subdued.