FMCG Companies Q1 2020-21 Results Update

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FMCG Sector was said to be the one of few sector to be resilient to blues of CVOID-19.

The companies or the segment which are into food space have done well in times like this.

Britannia have posted the highest growth in profit whereas united spirits have posted significant change in profit due to high material cost.

Summarized Financials


The company is largest FMCG company , it’s personal care & home care segment de-grown during the quarter however due to additions of GSK consumer their was increase in revenue & also on operating margin front.

It do posted growth in profit however that have come at the cost of decrease in net profit margin due to increase in depreciation by Rs. 28 crore.


ITC is one of the most diversified FMCG companies in India and is the largest tobacco company . It was expected that ITC profit will due to it’s dependence on it’s tobacco business as of now .

However, FMCG-others segment which includes brands like aashirvaad etc. posted 10% growth with improvement in margin of 62% but with no tourists in Q1 Hotels segment was whitewash .


The swiss based company is one the largest players in baby foods & noddles in India . Due to demand of ready to cook items with combination of maggi brand nestle posted growth of 11% in profit.

However, material cost increased slightly due various known factors . The Operating does improved during the quarter but net profit margin decline slightly due to increase in interest cost by Rs. 9 crore.

The company posted robust growth of 122% in ‘e-commerce’ channel which now contributes 3.6% of sales.


Biscuits were and are in demand during these period which have resulted in robust growth in profit of Britannia by 118%.

The company improved on every front be it material cost , Operating margin & net profit margin.

It seems the company might have created a moat along side Parle in biscuits segments.


Dabur was expected to post good results due to their penetration in rural market however the relevant segment in these times .i.e. Food de-grown in revenue by 41% with decrease in margin by 45%.

The company reported decline in Profit due to decline in OPM.

Godrej Consumer Products Limited (GCPL)

GCPL is centered around hygiene and mainly earns it’s revenue from India , Africa & Indonesia .

Both the India & African revenue decreased by 18% whereas Indonesia revenue increased by 9%.

On the margin front both India & Africa shown decline of 24% & 74% respectively whereas Indonesia margin expanded by 17%.

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The profit was flat and shall improve once situation get better.


Marico posted profit growth of 23.7% due to stable revenue from International operations & expansion of margins by 15%.

The Company said that it will strive to sustain the momentum and deliver growth in the balance part of the year, provided the ongoing COVID-19 crisis doesn’t drastically worsen in the times to come.

United Spirits Limited (USL)

USL posted loss of Rs. 242 crore with significant increase in material cost and depreciation.

Popular segment net sales declined 51% overall but declined 46% in priority states however there have been month-on-month improvement in July.

There was also significant decline in franchisee income the impact of which was Rs. 40 crore and they have also provided for slow and non moving inventories the impact of which was Rs. 21 crore.

The situation may improve going forward based on limitations in lock down.

Tata Consumer Products Limited

TCPL reported robust increase in profit mainly due to better gross margin, lower trade spends and lower discretionary expenditure.

Additionally revenue from salt increased by 11% & pulses and spices delivered robust growth >50%.

All three international markets viz. Canada , USA & UK posted double digits growth in revenue and expansion of gross profit margin.

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Colgate posted positive growth in Profit and expansion of operating profit margin & net profit margin.

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This mainly on account of decrease in advertising spend by Rs. 38 crore.

Varun Beverages Limited (VBL)

Due to decrease in sales during the quarter their was decline in profit however Operating margin declined only 18% .

This is mainly due to moderation in key raw materials and with sharp focus on cutting non-essential cost.

The situation will improve upon lifting on lock down and start of IPL.


The company reported significant decrease in sales and profit however operating margins improved due to cutting of other expenses by Rs. 104 crore.

Hatsun Agro

Profit increased due to decrease in other expenses by Rs. 67 crore however net profit margin slight contracted due to increase in depreciation by 11 crore .

Closing Remarks

Lifting of lock down and festive seasons ahead will improve the outlook of certain stocks.

Read more on results on resultsinfo.


The author own shares directly in ITC & GCPL and passively in some of the above stocks.

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