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Price hikes, volumes to feed FMCG earnings in April-June

The FMCG juggernaut, which has outperformed the market this year, is expected to remain steaming hot on the back of strong revenue and profit growth in the April-June quarter.

July 07, 2011 / 02:46 PM IST
 
 
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Nachiket Kelkar
Moneycontrol.com


The FMCG juggernaut, which has outperformed the market this year, is expected to remain steaming hot on the back of strong revenue and profit growth in the April-June quarter.


Companies like Dabur India and Asian Paints hiked product prices by 4-5% during the quarter, which coupled with strong volume growth aided by deeper distribution penetration, will lead to 18-20% growth in revenue on average for FMCG firms. It could grow as much as 34% for Godrej Consumer Products as acquisitions in Africa and Latin America bear fruit.

Profit growth, however, is likely to be mixed, say analysts. Dabur India is likely to report robust profit growth of 39% year-on-year in the three-month period, according to ICICI Securities