The September quarter results till now of consumer goods companies show most faced a tough time in the period.
Asian Paints’ 12 per cent volume growth was an exception in the fast moving consumer goods (FMCG) segment. Most others had low single-digit volume growth, below the five to eight per cent they saw earlier. Hindustan Unilever (HUL) had a one per cent fall in volumes, its lowest in seven years. “The market has been challenging,” said Sanjiv Mehta, its managing director. “Value growth for the (FMCG) market has been in the two-three per cent region for some time. Volume growth has been soft.” An average of the net sales growth of 10 companies whose quarterly results are out so far shows revenue growth of 7.6 per cent. Average net profit growth was better at 15.5 per cent, according to data compiled by BS Research, as companies strove to rein in expenditure.