FMCG Q2 results review: Sluggish volume growth a worry, does that make the sector an avoid?

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Varun Beverages and Colgate Palmolive India have gained about 39 per cent and 36 per cent, respectively, in the current calendar year so far (as of November 1). On the flip side, Dabur India (down 7.90 per cent), United Breweries (down 5.5 per cent) and HUL (down 3.5 per cent) are the three components of the Nifty FMCG index that have performed poorly this year so far. Nifty FMCG index is up nearly 16 per cent in the year so far, outperforming the benchmark Nifty 50 which has gained 5 per cent.

(Exciting news! Mint is now on WhatsApp Channels. Subscribe today and stay updated with the latest financial insights! Click here!) Hindustan Unilever (HUL): HUL reported a 4 per cent year-on-year rise (YoY) in its standalone net profit for Q2FY24 at ₹2,717 crore. The total revenue from operations increased by 3.6 per cent to ₹15,276 crore from ₹14,751 crore YoY.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin for the September quarter, came in at 24.6 per cent, up by 130 basis points on year. ITC: ITC's Q2 standalone net profit rose 10.3 per cent YoY to ₹4,927 crore. Revenue from operations moved up by 2.6 per cent to ₹16,550 crore.

EBITDA came in at ₹6,041.5 crore, up 3 per cent against ₹5,864 crore in the year-ago period. Nestle: Nestle India reported a net profit of ₹908 crore in the September quarter, up 37.27 per cent YoY. The net profit for the quarter includes a one-time gain of ₹106.4 crore.

Revenue increased 9.5 per cent to ₹5,036.8 crore from ₹4,601.8 crore in the year-ago period. Marico: Marico reported a consolidated net profit of ₹360 crore for Q2FY24, marking a growth of 17.3 per cent YoY. Revenue from operations dipped marginally by 0.8 per cent YoY, coming at ₹2,476 crore.