Diversification of revenue in FMCG sector enterprises

Purpose: The aim of this study is to analyse and evaluate FMCG sector enterprises from the perspective of revenue analysis in the context of their diversification. The research period covers the years 2019-2023. During the analysed period, there were two key moments when enterprise revenues could have been destabilised (the year 2020 and the year 2023). Design/methodology/approach: A literature review was carried out. In addition the study applied the Hirschman-Herfindahl measurement concept, which developed the HHI Index for revenue diversification. During the analysis, the share of sales revenue, other operating revenue, and financial revenue in the total revenue was determined. Particular attention was given to the structural composition of revenue generated from sales. Findings: The revenue diversification index for FMCG sector companies, as determined by the HHI index, shows values close to 1, indicating a strategy of revenue concentration. The analysis of the structural composition of revenue confirms that FMCG sector enterprises generate income mainly from the sale of goods, materials, and products. When examining the structural composition of revenues using the HHI index, values close to 1 were again obtained, indicating the absence of a diversification strategy. Research limitations/implications: The empirical study used the convenience sampling method, therefore the obtained results cannot be generalized to the entire FMCG sector. Practical implications: The article reveals that companies of sector FMCG apply a strategy of revenue concentration. Originality/value: The article partially fills the research gap in empirical studies on revenues and their diversification. It also provides a basis for a later, in-depth stage of empirical research on the impact of revenues (and incurred costs) on the financial result. Keywords: revenue, diversification, FMCG sector. Category of the paper: Research paper.