FMCGs' revenue may double to 10-12% this fiscal
Price hike across several products, raft of other favourable factors adding to top line
image for illustrative purpose
Revenue growth of the fast-moving consumer goods (FMCG) sector will double from five-six per cent reported for last fiscal to 10-12 per cent in 2021-22, said Crisil Ratings. Accordingly, the trend is expected to be driven by price hikes effected across product categories to offset the impact of raw material price increase and a raft of other favourable factors.
Besides, the agency said that operating margin, on the other hand, will be restored to the normal level of 19-20 per cent with a moderation of 80-100 basis points (bps) this fiscal due to increase in advertising expense and rise in raw material prices.
Interestingly, it cited that operating margin had improved by 100 bps last fiscal despite lower revenue growth, due to reduction in advertising and promotional expenses.
