Leading FMCG companies in the country are expecting their sales growth numbers in high double digit in the April-June quarter, a period when the broader market was severely impacted by the second wave of the COVID-19 pandemic.
FMCG companies such as Godrej Consumer Products Ltd (GCPL) and Marico, in their quarterly updates to bourses, informed about double-digit sales growth.
While Tata Consumer Products Ltd (TCPL) MD and CEO Sunil D’Souza in an interview had told PTI, the Tata Group FMCG firm expects higher growth in the Q1/FY’22 over Q4/FY’21.
GCPL on Monday said it expects sales in India to grow “in high teens” in the first quarter ended June 30, while at a consolidated level also it is confident of delivering “strong double-digit” sales growth.
In its quarterly update for Q1 2021-22, the company said, “During the quarter, demand trends in our categories across the key countries we operate in, remained steady.”
In India, GCPL said, “We expect to deliver sales growth in high teens, driven by strong volume growth and calibrated price increases.”
The Godrej group firm witnessed strong double-digit sales growth in its home care and personal care categories.
While Marico had last week said its domestic business has witnessed over 30 per cent growth in the April-June quarter helped by double-digit volume growth.
The company is seeing “improving demand trends, as the second wave appears to be receding and the vaccination drive is progressing steadily,” said Marico in its quarterly update for Q1 of FY2021-22.
“The India business delivered 30 per cent plus revenue growth, backed by a robust double-digit volume growth,” said Marico.
On the international business, Marico said, it has posted “constant currency growth in the low 20s” on the back of sustained momentum in Bangladesh and broad-based recovery across other markets.
According to Edelweiss Financial Services executive vice president Abneesh Roy, in Q1/FY’22, the first three weeks of April saw continued growth momentum from Q4/FY’21 then the Covid cases shot up sharply leading to May being a very challenging month.
“However in June, the sector saw a decent recovery. YoY growth will still look good for most companies given Wave 2 was not a hard lockdown,” he said.
Roy further said YoY margins will be under pressure for staples companies due to commodity inflation and exceptionally low ad spends in Q1/FY’21.
Even retailers like D-Mart reported double-digit growth in sales for April-June quarter.
During the second wave, most retailers were permitted to open stores with limited hours selling only necessary items, most of which was FMCG, and through taking orders online.
Photograph: Amit Dave/Reuters