Our ‘CPG Organic Growth Barometer’ uniquely tracks the organic revenue growth of the Consumer Packaged Goods (CPG) industry, giving organisations the opportunity to benchmark their own growth against industry averages and top quartile performers.
Delivering sustainable ‘organic’ revenue growth has become the most significant performance challenge facing consumer goods companies in both developed and developing markets.
Consumer behaviours, brand relationships, and shopping habits are fundamentally changing what consumers choose to spend their money on.
Meanwhile, competitive barriers to entry are lowering, enabling smaller more agile competitors to challenge the major players and their long-established brands.
The first KPMG CPG Organic Growth Barometer which analyses the top 60 branded consumer packaged goods (CPG) companies, by revenue, listed on the European and North American stock exchanges shows that companies can be successful in delivering organic growth and that despite challenging conditions, many long-established names are continuing to deliver.
Organic revenue growth definition
For the purposes of this study, organic revenue growth has been defined as like-for-like year-on-year percent revenue growth at constant currency and excluding the impact of M&A and divestments from one year to the next. The key components of organic revenue growth have been assumed to be price, mix and volume changes.
We analysed the top 60 branded consumer packaged goods (CPG) companies, by revenue, listed on the European and North American stock exchanges. These companies make up our sample.
The top 60 ranking for 2015 is based on Capital IQ data (LTM, 31/03/15). Our study excludes:
The table in Exhibit 2 (PDF 98KB) provides a full list of the sample of companies used.
Organic revenue growth research
The primary source of data in the study is company published information, such as press releases, annual reports and investor presentations:
Year-on-year organic revenue growth figures were collected or calculated for the years in the period between 2009 and 2015. Sample sizes vary by year due to data availability as per Exhibit 1 (PDF 98KB).
To calculate the 5-year CAGR for each company, we indexed Year 0 to 100 and compounded year-on-year organic growth figures over a period of five years to calculate the Year 5 index value. The standard CAGR calculation method was then used to estimate the average growth rate for the period (i.e. CAGR = (Year 5 index/ Year 0 index)^(1/5)-1).
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.
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