October-December 2023 speaks volumes about FMCG demand revival
reduction in prices and what companies see as a sign of recovery in consumption.
Companies like Adani Wilmar, Marico, Dabur and Godrej Consumer Products on Thursday and Friday said in investor notes that there has been volume-led growth in their sales in the October-December period. But value growth came under pressure as companies cut prices from early 2023 to pass on the benefit of lower raw-material costs.
India's largest edible oil company, Adani Wilmar that sells the Fortune brand of products, on Friday said it recorded the best-ever volumes in branded oil and foods during the last quarter.
The company cited demand during the festive and wedding seasons and rural sales, and a drop in retail prices, for the volume growth over a strong base quarter. While sales volume grew 6% from a year earlier, Adani Wilmar said lower pricing of edible oils in line with a fall in the cost of raw materials resulted in a 15% decline in revenue.
Godrej Consumer Products said volume growth was likely in a high single digit, but sales value growth was flattish last quarter.
Marico, which sells the Parachute coconut hair oil and Saffola oil, said domestic volumes grew in a low single digit year-on-year with a slight sequential improvement in core portfolio. But consolidated revenue declined by a low single digit.
«After a few quarters, volume growth has been better than value growth for the fast-moving consumer goods industry last quarter, driven by price cuts ensuring consumers purchase more,» said Mayank Shah, senior category head at Parle Products, India's top biscuits maker.
