New Delhi, Jul 4 (PTI) Fast-moving consumer goods (FMCG) makers are expecting their topline growth to be impacted in June quarter due to headwinds like unseasonal rains, a brief span of summer and inflation pressure on key inputs. However, the FMCG industry witnessed a sequential recovery in demand during the quarter, with an uptick in volume growth, particularly in urban markets. Margins of FMCG majors such as Marico, Dabur, and Godrej Consumer remained below the normative level and they expect a low-single-digit volume growth in the April-June period. Godrej Consumer Products expects its margin from the India business to stay below the ‘normative range’ in the June quarter, but is likely to deliver high-single-digit value growth aided by volume expansion. The company’s volume growth, in its standalone business, has been strongly competitive and is sequentially improving, said the Godrej Industries Group FMCG arm in its quarterly updates. “Standalone EBITDA margin in Q1FY26 is likely to be below our normative range but is expected to improve,” said Godrej Consumer Products Ltd (GCPL). Dabur’s consolidated revenue in the June quarter is expected to grow in low-single digits on account of a decline in beverages, which was impacted during the quarter due to unseasonal rains and a short summer. Its “consolidated operating profit growth is expected to marginally lag revenue growth,” said Dabur in its updates for the June quarter. However, Dabur’s home and personal care (HPC) division is expected to perform well, driven by the oral, home and skin care categories. “Key brands such as Dabur Red Toothpaste, Odonil, Odomos, and Gulabari are expected to post strong growth coupled with market share gains.Within healthcare our brands such as Dabur Honey, Hajmola, Dabur Honitus, and Dabur Health Juices are expected to post robust double-digit growth,” said Dabur. Similarly Marico expects a ‘modest operating profit’ in the June quarter as it continued to witness sequential inflation in some key raw material inputs as copra, which was further heightened by unseasonal rainfall patterns. Vegetable oil prices eased following the cut in import duty by the government and crude oil derivatives remained range-bound, it added. Gross margin is expected to be under “incremental pressure, on a particularly high base and partly due to the pricing-led high denominator effect, said Marico which owns brands such as Saffola, Parachute, Hair & Care, Nihar and Livon etc. About the sector, Marico said it witnessed a “consistent demand pattern” in the June quarter, with improvement from the rural market. “During the quarter, the sector exhibited consistent demand patterns, marked by improving trends in rural markets and steady urban sentiment. We expect gradual improvement in the quarters ahead, supported by easing inflation, a favourable monsoon season and policy stimulus,” said Marico. In terms of channels, organised trade including e-commerce, quick commerce in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. 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Companies in the fast-moving consumer goods (FMCG) sector have observed an influence of weather on their revenue growth during the June quarter.
