This week, several major consumer led companies in India, including Hindustan Unilever (HUL), Dabur, Nestle India, and Swiggy, announced their Q1 results, reflecting varied performances amid a complex economic landscape.
HUL reported a 5.6% uptick in net profit to Rs 2,756 crore, driven by a 5% underlying sales growth and 4% volume growth, with its stock rising nearly 4% post-results, signalling positive market sentiment. Dabur posted a modest 3% year-on-year net profit increase to 514 crore rupees, supported by growth in its quick commerce segment, which is expected to expand significantly. Nestle India, however, saw a 5% stock decline after reporting underwhelming results, with muted revenue growth of 4.5% to Rs 5,448 crore, impacted by high commodity costs and sluggish urban demand.
Speaking of quick commerce, Swiggy reported a widened net loss of Rs 1,197 crore, up from Rs 611 crore last year, despite a strong 54% year-on-year revenue increase to Rs 4,961 crore, driven by its quick commerce platform, Instamart, reflecting the competitive dynamics of the sector. These results highlight a mix of resilience and challenges in the FMCG and quick commerce sectors, with urban demand pressures and input cost inflation posing hurdles, while rural demand and premiumization offer growth opportunities.
