FMCG makers expect inflation to hit volume growth, operating profit in Q3

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FMCG makers expect inflation to hit volume growth, operating profit in Q3 - Business Standard

Quick Summary:

Hit by inflation, higher input costs and pricing measures, fast-moving consumer goods companies are expected to see a contraction in their gross margin and a modest-to-flat operating profit in the October-December quarter.

Some of the listed FMCG companies, such as Dabur and Marico, shared their updates for the third quarter of FY25, and analysts expect either flat or low single-digit volume growth.

One of the reasons could be that a number of companies have opted for a price hike in the December quarter due to rising costs of input items such as copra, vegetable oil, and palm oil.