FMCG: After decade-low volume show in Q4, June qtr to see further pain

Q4 was weaker than demonetisation and GST times; Q1 could witness even more pain

Although the fast-moving consumer goods (FMCG) sector is in better shape, it could not escape the pain arising from Covid-19-led disruptions. The average volume fell to decade-low levels in the March 2020 quarter (Q4FY20), and the April-June (Q1FY21) period is likely to be even worse. 

The Covid impact

In Q4FY20, the average volume of eight FMCG companies declined by about 12 per cent, following disruptions in the supply chain. According to Vishal Gutka, vice-president at PhillipCapital, “Though contraction in volumes in Q4 was mainly because of supply-chain issues — a one-time impact — the volume performance was the worst in a decade.”