FMCG – Significant Slowdown in Retail Sales

FMCG sales grew 5.9% YoY in October 2009 (the slowest growth since Feb-07) compared to 14.8% growth in F1H10. The TOP10 players witnessed deceleration in sales growth, with sales in October growing 1.7% vs. 9.9% growth in F1H10.

Hindustan Unilever witnessed a deceleration in sales across its major categories (viz. laundry bars, toothpastes, soaps, shampoos, tea, laundry powder, and skincare), leading to de-growth of 0.4% (vs. 8.1% in F1H10) for the first time since February 2007.

Dabur witnessed a deceleration in revenue growth, from 9.6% in F1H10 to 3.9% in October 2009.

Colgate’s sales growth in toothpaste and toothpowder slowed down, leading to overall growth of 5.9% vs. 10.5% growth in F1H10.

Nestle saw sales growth slowing from 15.8% in F1H10 to 6.7% in October 209, with noodles, milk powder, chocolates, and coffee sales growth decelerating in October 2009.

P&G’s laundry powder, shampoos, and feminine hygiene sales led to a slowdown in sales growth from 16.4% in F1H10 to 7.6% growth in October.

Britannia has witnessed de-growth since Jul-09, with the pace accelerating in October 2009 to 4.5%