Weak urban demand, inflation likely to hit Q4 FMCG volumes

Subdued demand, especially in the urban sector, coupled with inflation, is likely to drag down the volumes of fast-moving consumer goods (FMCG) companies in the fourth quarter (Q4) of 2024-25 (FY25).

- AKSHARA SRIVASTAVA

In its quarterly update, Dabur India, the maker of Hajmola candy and R éal fruit juices, said its India FMCG business is likely to decline to mid-single digits due to delayed and truncated winters and a slowdown in urban markets. "As a result, Dabur's consolidated revenue is expected to be flat during Q4," the company said, adding, "Due to the impact of inflation, coupled with operating deleverage, we foresee Q4 operating profit margin to contract by 150-175 basis points year-on-year."

The company, however, pointed out that during the quarter, rural markets continued to be resilient and grew ahead of urban markets, while its key international markets are likely to report strong growth.