An uptick in digital demand and sales through e-commerce and quick commerce led to strong revenue growth of Fast-Moving Consumer Goods (FMCG) players in the first quarter of FY24.

During the quarter, Tata Consumers registered a 28 per cent revenue growth through e-commerce while 22 per cent growth was registered through modern trade.

“On a long-time basis, consumers will move towards convenience. We are seeing growth in e-commerce and quick commerce is growing stronger than average and we remain committed to growing. Quick commerce has been on an upspring in the last six to 12 months. On the online space in the tea business, we are the market leader,” said Sunil D’Souza, Managing Director and Chief Executive Officer of Tata Consumer Products during the earnings call.

Hindustan Unilever Ltd (HUL) stated that it saw an uptick in its skincare and colour cosmetics during the quarter and will continue to grow its digital brands.

“We continue to build our skincare portfolio in high-growth demand spaces through innovations and further scale-up of our digital brands,” said Ritesh Tiwari, CFO and Executive Director, Finance and IT of HUL.

Marico stated that product categories through its digital-first portfolio will be an annual recurring revenue (ARR) of ₹400 crore in FY24.

Premium uptick

Companies also registered an uptick in demand upticks on their products in the premium portfolio. Skincare and colour cosmetics grew double-digit on strong performance in the premium portfolio and fabric wash delivered double-digit growth led by the premium portfolio for HUL.

“Growth is coming from the premium end, which is about one-third of the business now growing faster. And here, in fact, much of the focus of our innovations, our A&P spends, our market development and our portfolio expansion are happening,” said Rohit Jawa, Managing Director and CEO of HUL.

Marico has stated that its premium personal care business will contribute to 10 per cent of the domestic business by FY24.

Home and personal care

With green shoots in rural India, companies also registered a sales uptick in home and personal care products during the quarter. HUL reported a 10 per cent revenue growth with mid-single-digit volume growth for home care while the beauty and personal care segment saw 4 per cent revenue growth.

Jyothy Labs registered an 18 per cent growth in its fabric care while a 21 per cent growth was registered in its personal care products.

“Fabric Care and Dishwashing continued to do well with 11 per cent y-o-y revenue growth while personal care witnessed accelerated growth driven by good performance in the base variant of Margo,” mentioned ICICI Securities.

Further, for HUL during the quarter, consumption of ice creams saw an impact due to unseasonable rains and registered a mid-single-digit growth.

Related Topics
comment COMMENT NOW