Results preview: FMCG firms confident of strong Q3 revenue growth

Rural demand continues to remain under pressure

Price hikes effected over the past year are expected to drive revenue growth for fast-moving consumer goods (FMCG) companies in the October-December quarter (Q3) of financial year 2022-23 (FY23).

Volumes are expected to grow in the low single-digits because of reduction in grammage, inflation, and weakness in rural demand, a trend that FMCG companies and analysts highlighted ahead of the results.

In its quarterly update, Godrej Consumer Products said the FMCG sector witnessed sluggish growth driven by poor rural consumption and a slowdown after the festival season. “We expect to deliver double-digit sales growth backed by low single-digit volume growth,”