FMCG SECTOR: Q1 ( APR – JUN ’17 ) RESULTS AND ANALYSIS
FMCG Sector:
Q1 – FY 2017-18 was bad for the Indian FMCG sector. Almost all the companies have posted a weak set of numbers in the quarter.
For the numbers, only 1 company out of 10 able to register positive improvements both in the Revenue as well as Profits in April to June quarter of 2017-18 as compared to the same period last year – rest 9 companies fails to do so.
The Common Parameters for such Dismal Performance for the Sector are
(1) Geopolitical conditions in the domestic as well as international markets
(2) De-stocking due to Goods and Service Tax
(3) Aggressive ad spends
Market Leader Performance:
Market leader Hindustan Unilever registered 4.77% growth in Revenues and 9.28% growth in Profits (the only company to do so in the enire FMCG space) as compared to the same period last year.
Star Performer in the Sector:
The star performer in the sector for the quarter ended 30 June 2017 was Hindustan Unilever where the company showed 9.28% increment in profit and 4.77% growth in Revenue as compared to same period last year.
Here is the Data:
Future Outlook:
It is clearly visible from the numbers that the trade has still not come back to pre-goods and services tax (GST) levels. Besides this, Patanjali is emerging as a strong brand and major competitor for the listed entities in the FMCG space. The companies can expect the second half of FY18 to record better growth on the back of festivals like Diwali and others.
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