FMCG Q3 profitability affected by surging input cost

The third quarter of FY2011 saw margin reduction for most of the fast moving consumer goods (FMCG) companies on account of a higher raw material cost and sustained higher advertisement spends during the quarter, reports the Economic Times quoting brokerage firm Sharekhan.

February 11, 2011 / 17:44 IST

The third quarter of FY2011 saw margin reduction for most of the fast moving consumer goods (FMCG) companies on account of a higher raw material cost and sustained higher advertisement spends during the quarter, reports The Economic Times quoting brokerage firm Sharekhan.

The top line growth was a function of a better volume growth for the FMCG companies (except for Tata Global Beverages Ltd [TGBL]) while the price increases improved the overall value growth of these companies, the report adds.

Source: The Economic Times

first published: Feb 11, 2011 05:38 pm

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