FMCG majors Dabur, HUL, ITC, Glaxo Consumer, Godrej Consumer, Jubilant Foods and Marico have declared the Q1FY14 results. FMCG Companies reported a decent growth in the top line but some of the companies were not able to maintain their margins in Q1FY14.
The Revenue growth is seen to be positive for all companies on a year on year basis. Except for Hindustan Unilever, other companies have shown a moderate increase in the net profit for Q1FY14. Growth in net profit is seen to be muted for Godrej Consumer and Jubilant Foods.
The EBITDA margins and the Net Profit Margins continue to remain under pressure amidst rising raw material costs with demand slowdown. The companies have increased the prices of their products and have been able to pass part on the rise in costs to the customers. Dabur India, ITC and Marico have shown improvement in margins for Q1FY14.
Largest Ayurveda and Natural Health Care Company, Dabur has shown strong growth in key categories like Hair Care, Oral Care, Foods, Home Care and Skin Care. Net sales increased by 13% to Rs.16,511 million for Q1FY14. Consolidated Net sales stood at Rs.14,619 million in Q1FY13. Inspite of tough macroeconomic conditions and disruption in the international business from Egypt, it has reported a 25% increase in the consolidated net profit for Q1FY14 to Rs.1870 million as against Rs.1496.4 million a year earlier. EBITDA margin and net profit margin increased by 37 bps and 111bps respectively over Q1FY13.
HUL reported a top line growth of 7% to Rs.66874 million over Q1FY13 at Rs.62501 million, due to the premium segment and the discretionary categories remaining under pressure the Net profit has decreased by 23% to Rs.10192 million in Q1FY14 against Rs.13311 million in Q1FY13. EBITDA margin and Net profit margin have declined by 293 bps and 606 bps respectively over Q1FY13.
ITC a market leader in cigarettes, agri-export business has posted decent results in Q1FY14. Net sales increased by 10% to Rs.73,385 million. The Q1FY14 net profit rose 18 percent year-on-year to Rs.18913 million. The EBITDA margin and the net profit margin rose by 234 bps and 169 bps on a year-on-year basis. The company is expected to do well in Q2FY14 on the back of increase in prices of cigarettes.
GlaxoSmithKline Consumer Healthcare Ltd. reported an increase in net sales by 13.18% to Rs.8259 million on a year on year basis and the Net Profit increased by 12.48% to Rs.1199 million. EBITDA margin reduced slightly by 9 bps but the net profit margin improved by 54 bps.
Domino’s Pizza brand operator Jubilant food works Ltd reported a healthy net sales growth of 26.08% to Rs.3964 million but the net profit increased only by 5.26% to Rs.340 million on a year on year basis. But margins are down significantly. EBITDA margin and Net profit margin have declined by 140 bps and 170 bps corresponding to Q1FY13. Company has opened up the new chain of Dunkin Donuts restaurant recently.
Godrej Consumer Products Ltd. the market leader in hair colour and household insecticide segments (GCPL) has posted a 24% increase in net sales while the net profit increased by 1.76% on a year on year basis. EBITDA margin and Net profit margin declined by 147 bps and 168 bps corresponding to Q1FY13.
Hair Oil market leader Marico Ltd. showed a growth of 8.87% in net sales on a year on year basis. The net profit increased by 27.38% to Rs.1577 million corresponding to Q1FY13. Margins also improved significantly with the EBITDA margin and the Net profit margin increasing by 144 bps and 166 bps respectively corresponding to Q1FY13.