FMCG Sector – Q3 FY20 Results Analysis
3 min readFMCG Sector Analysis
In this article, you will get the latest quarterly result updates of FMCG sector companies comprising in NIFTY 200. Updated as on 13th Feb, 2020.
We have already covered three sectoral analysis – Healthcare sector, Auto & Auto Ancillary sector and Banking, Finance & Insurance sector.
Here, the percentage growth year-on-year (YoY%) as well as quarter-on-quarter (QoQ%) for the Market Capitalization (Mkt Cap), Revenue and Net Profit (PAT) of FMCG sector companies in NIFTY 200 is given.
| Sr. No. | Company Name | Mkt cap QoQ% | Mkt cap YoY% | Revenue QoQ% | Revenue YoY% | Net profit QoQ% | Net Profit YoY% |
| 1 | Britannia Industries Ltd. | 4.2% | -2.0% | -2.9% | 3.8% | -8.2% | 22.9% |
| 2 | Colgate-Palmolive (India) Ltd. | -2.3% | 10.4% | -6.4% | 4.1% | -18.4% | 3.6% |
| 3 | Crompton Greaves Consumer Electricals Ltd. | -1.6% | 3.6% | -0.4% | 4.0% | 45.2% | 102.0% |
| 4 | Dabur India Ltd. | 4.6% | 9.0% | 6.4% | 7.0% | -1.1% | 8.8% |
| 5 | Emami Ltd. | -0.9% | -25.2% | 23.1% | 0.2% | 50.5% | 5.6% |
| 6 | Godrej Agrovet Ltd. | 9.4% | 4.0% | -3.6% | 22.9% | -55.8% | 0.0% |
| 7 | Godrej Consumer Products Ltd. | 1.7% | -14.4% | 5.6% | 2.1% | 7.5% | 5.0% |
| 8 | Havells India Ltd. | -8.5% | -6.5% | 1.8% | -9.9% | 12.1% | 2.9% |
| 9 | Hindustan Unilever Ltd. | -2.7% | 7.5% | 0.2% | 3.8% | -10.3% | 13.0% |
| 10 | ITC Ltd. | -6.9% | -15.5% | 3.6% | 5.7% | -3.0% | 29.0% |
| 11 | Jubilant FoodWorks Ltd. | 24.6% | 33.0% | 7.3% | 14.3% | 39.5% | 9.6% |
| 12 | Marico Ltd. | -10.8% | -7.1% | -0.3% | -2.0% | 9.5% | 10.0% |
| 13 | Nestle India Ltd. | 8.0% | 34.2% | -2.1% | 8.8% | -20.6% | 38.4% |
| 14 | Procter & Gamble Hygiene & Health Care Ltd. | -4.8% | 15.2% | ||||
| 15 | Varun Beverages Ltd. | 15.9% | 35.6% | -30.2% | 54.1% | NA* | NA* |
| 16 | Voltas Ltd. | -3.2% | 17.6% | 5.1% | 0.2% | -8.4% | -2.0% |
| 17 | Whirlpool Of India Ltd. | 19.3% | 66.1% | -8.8% | 4.9% | -41.3% | 20.8% |
| Average | 5.9% | 1.1% | 0.5% | 5.0% | -5.1% | 20.5% |
*The companies were in losses in any one of the periods considered for calculation purpose and hence percentage change cannot be calculated in such cases.
Sector Update – FMCG
FMCG is the fourth largest sector in the Indian economy with household and personal care accounting for 50 per cent of FMCG sales in India. This sector has seen a slow growth since the past four quarters. This was noticed initially when rural demand, which usually has more growth rates than urban, saw a decline. Multiple factors including the liquidity crisis that started in Q2-FY20 impacted the FMCG due to its high cash dependency. Increase in food inflation, low government spending and raised telecom tariffs may affect this sector in coming days.
- To face the ongoing slowdown in the growth, companies have tried pushing products through promotions, offers and low unit price packs in various categories.
- Besides liquidity crisis, consumer sentiments too were weak because of no job addition, and salary hike was silenced in 2019.
- Distribution is still one of the biggest challenges for some players in rural areas due to insufficient infrastructure.
- HUL’s home care business was the top performer during the quarter, registering about 10% growth.
- Colgate’s PAT has been affected due to its aggression in ad-spends and product pipeline.
- ITC’s Net profit growth is largely due to corporate tax cut. Also, EBITDA growth is due to a favorable base in FMCG and hotel segments.
- Britannia’s short-term PAT has affected due to inflation in input commodities such as wheat, milk and palm oil.
- Some of the actions that helped Crompton Greaves- special incentives for channel partners, selective extension of credit to dealers, focused pricing action, and new product launches.
- Emami’s short term performance was affected majorly due to market slowdown and delayed winter as they have a significant winter portfolio.
- Jubilant Foodworks performance was majorly driven by strong growth in online sales.
- Nestle India’s YoY growth in Revenue as well as Net Profits was mainly driven by broad-based volume growth and superior product mix, associated with improvement in operating profit margins YoY (from 19% to 22%).
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