Global FMCG Cos face disruption in Sept quarter, upbeat about future growth on favourable macros

NEW DELHI: Multinational FMCG companies selling soap to soft drinks in the Indian market reported some impact on their sales in the September quarter from disruption owing to GST reforms, along with unusually heavy rains in parts of the country, but they see growth in the coming quarters, helped by favourable macroeconomic conditions.

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Leading global markers, including Unilever, Reckitt, Heineken, PepsiCo, and Coca-Cola, in their respective earnings calls, have mentioned challenges they faced due to disruptions in trade channels in September.

“Our emerging market performance is improving; India, in particular, is very well positioned over the medium term. The GST reform has had some impact in the short-term, but we believe it is very good news for 40 per cent of our portfolio with close toa 10 per cent price reduction,’ Unilever CEO Fernando Fernandez said.

British FMCG major Reckitt said its net revenue growth in India was impacted in the September quarter due to the implementation of new GST slabs; however, it reported volume-led growth in its germ protection brand Dettol.