FMCG firms expect better second half after weak Q2

DEMAND CONDITIONS TO IMPROVE, SAY TOP EXECUTIVES

- VIVEAT SUSAN PINTO

SOME OF THE country's top consumer goods companies, which have already reported their second quarter numbers, believe the second half of the ongoing financial year will be stronger than the first, driven by better demand conditions.

The GST-related trade disruptions that hit financial performance in the September quarter will abate, top executives said, with volume growth likely to improve on GST-induced price cuts and income tax cut.

The aggregate financial numbers derived after combining the earnings of eight top FMCG firms which have declared their results so far show year-on-year revenue growth and profit growth for Q2 are at just 1.7% and 1.1%, respectively. While Ebitda growth has been flat, Ebitda margins have been range-bound at 24% versus 24.5% seen last year.