This week in FMCG: Most companies post profits in Q1 on low base

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26 Aug, 2025 12:21

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In the week gone by, a slew of fast moving consumer goods (FMCG) companies reported its first quarter results. The week kick started with Godrej Consumer Products (GCPL) reporting quarterly numbers, followed by Dabur, Marico and Nestle.

All companies posted profit in the first quarter of the FY19. Godrej Consumer Products ruled the roost as the company reported the highest year-on-year rise of 80 percent in net profit.

Its consolidated net profit for the June quarter rose 80 percent on-year to Rs 405 crore driven by a favourable base and expansion in operating margin led by aggressive cost control measures.

For three quarters on a trot, double-digit volume growth of fast moving consumer goods companies has been fuelled by rural India. It was a similar story for all the four companies that have witnessed steady volume-led growth for the last four quarters. As the base effect fades and rising raw material cost warrants a price hike, topline trajectory is now entering difficult territory.

Another FMCG player, Dabur India reported 25 percent year-on-year (YoY) rise in consolidated net profit for the June quarter at Rs 329.2 crore as against Rs 264.1 crore posted in June FY18.

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The consolidated revenue was Rs 2,080.7 crore, up 16.2 percent on year in the June quarter FY19. This was helped by volume growth of about 21 percent.

Marico reported net profit growth of 10.35 percent year-on-year (YoY) at Rs 260.1 crore for the first quarter ended June, backed by the statistical effect of a low base.

Volume growth during the quarter was 12.4 percent, on the back of wide-ranging recovery in volumes across portfolios.

Noodles-to-chocolate maker Nestle India’s net profit rose 49.5 percent year-on-year (YoY) to Rs 395 crore in the second quarter of the 2018 calendar year.

The company that follows the January-December financial year reported a 12.3 percent YoY rise in net sales at Rs 2,698.4 crore helped by volume growth.

Analysts said that as the advantage of soft base peters out in the coming quarters, a pricing and demand-led recovery would be key factors to watch out.

The quarter in review also cements the trend that rural growth is higher than urban in the FMCG space, they said.

During the week, Proctor & Gamble Global held an investor conference call wherein Chief Executive Officer David Taylor said that the company posted robust growth numbers for the year ended June 30, 2018, of which two markets — India and Turkey — reported double-digit growth.

Taylor added that sales were growing for all categories in India and he was bullish on the Indian market.

Also read:

Godrej Consumer Q1 PAT surges 80% to Rs 405 crore; Co announces bonus issue

Dabur Q1 profit jumps 25% to Rs 329 crore; volume growth at 21%

Marico Q1 profit up 10% at Rs 260 crore; meets estimates

Nestle India Q2CY18 profit up 50% at Rs 395 crore on higher sales, margin

Yumlane aims to achieve Rs 100 crore in sales by 2020, says CEO Ahuja

P&G's global CEO says category sales growing; bullish on Indian markets