BENGALURU (Reuters) -Indian consumer goods companies Marico and Dabur reported modest growth in their first-quarter sales volumes rose as demand improved gradually, with consumers spending more on personal care and cooking products.
WHY IT’S IMPORTANT
Volume trends from key consumer goods companies, which sell everything from hair and cooking oils to oats, are seen as an important indicator of consumption patterns in the country.
KEY CONTEXT
Marico makes more than a quarter of its sales from rural India, while Dabur brings in almost half of its overall sales from villages and small towns. Both are expected to be key beneficiaries of the recovery in rural demand as companies cut prices, as per analysts.
The recovery, though, is not complete from last financial year when persistently high inflation forced consumers to tighten their wallets.
Rivals Godrej Consumer Products and Adani Wilmar are also due to post their quarterly updates.
BY THE NUMBERS
Company Q1 revenue growth Q4 revenue Q1 domestic Q4
expectation growth volume growth domestic
expectation volume
growth
Marico High single-digit 2% “Modest” 3%
percentage growth sequential
uptick
Dabur Mid to high 5.1% Mid-single digit 4.2%
single-digit percentage
growth growth
(Reporting by Varun Hebbalalu and Ashna Teresa Britto in Bengaluru; Editing by Nivedita Bhattacharjee, Sohini Goswami and Savio D’Souza)
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