The FMCG sector registered a robust recovery in the December quarter, aided by GST changes, festive sales, and reduced costs of raw materials. Even Dabur, Marico, and Godrej Consumer Products reported volume growth with single-digit revenue growth along with improved operating profit margins. The rural market continued to report better sales than the urban market, along with a sharp increase in e-commerce sales, as reported by ANI.After the initial shocks created by the GST implementation, with the need for the clearance of stocks, the market is now stabilising. There has been reported improvement in customer sentiment in both the urban and rural markets, with the rural market being stronger.Dabur anticipates double-digit growth in its Home & Personal care segment, especially in the category of hair oils and oral care. The company predicted its main brands like Dabur Amla, Almond, Anmol, Red Toothpaste, and Meswak will show healthy growth and gain market share. “Within the India business, we expect the Home & Personal care business to grow in double digits on the back of strong growth in Hair Oils and Oral care category. Key brands, which are likely to record healthy volume-led growth, are Dabur Amla franchise, Dabur Almond, Dabur Anmol, Dabur Red Toothpaste and Meswak,” it said.Godrej Consumer Products sees improving market conditions and expects close to double-digit revenue growth. The company is confident about better consumption in coming quarters due to falling inflation and lower GST rates making products more affordable. “We remain confident of a gradual improvement in consumption over the coming quarters, supported by falling inflation and improving affordability, following lower GST rates,” said the FMCG arm of Godrej Industries Group (GIG).Marico anticipates high revenue growth in the twenties for Q3, with better margins. The company sees steady demand and is optimistic about future growth, citing factors like lower inflation, reduced GST rates, higher minimum support prices for farmers, and good crop season. “Consolidated revenue growth on a year-on-year basis stood in the high twenties, poised to achieve our full-year aspiration,” it said.Major retailers are also showing strong performance. Trent reported 17 per cent revenue growth to Rs 5,220 crore. D-Mart saw its profits rise by 18.27 per cent to Rs 855.78 crore, while revenue grew 13.32 per cent to Rs 18,100.88 crore. Titan’s revenue grew by up to 40 per cent, largely because of rising gold prices.The organised retail segment continues to do well, with e-commerce and quick delivery services particularly growing at a high rate. Companies expect this positive trend to continue with improvement in market conditions and increase in consumption.
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