Packaged consumer goods companies clock a significant portion of their sales from Rs 5 and Rs 10 packs. However, companies had to reduce the grammage of these packs in the wake of inflation to protect their margins.
Mukherjea feels that the Indian economy is recovering nicely and the cost of credit in India continues to remain very low. Though the global economic conditions were a little choppy six months ago, but they're becoming fairly benign again.
Nestle India and Emami have entered the pet food category through acquisitions as the growing trend of pet ownership, especially after the pandemic, has made the business more lucrative.
Volume growth gets hit as more consumers buy these packs, as do margins. But companies have little choice if they want to retain consumers
Adani Wilmar CEO and MD says the company is seeing a growing demand for branded staples after 5% GST on unbranded food products kicked in
Data analytics firm NielsenIQ on Tuesday said the overall consumption has revived as unit volume has increased on a sequential basis in the April-June quarter but on an annual basis, it had a negative growth of 0.7 per cent in the latest quarter under review.
Sustainability of cigarette volumes, competition from smuggled varieties need to be watched
A significant price rise across commodities has been affecting the consumer’s purchase across segments for more than a year now. A recent report released by insights and consulting company Kantar Worldpanel highlights how consumers are coping with the high inflation.
The move is aimed at ensuring continuity of Porter’s business vertical with COGOS’ business model and strengthening the focus on the core business solutions, Porter said.
FMCG companies have now pinned hopes on the monsoon, which could bring about revival in the rural economy and spur sluggish consumption.
The stock emerged as a good defensive play in volatile equity markets. Global stocks markets including India are under pressure due to higher inflation and expected monetary tightening by central banks. Analysts also fear a recession due to aggressive rate hikes by the US federal reserve.
The FMCG bellwether’s strong growth in a weak market even at the cost of falling margins reflects a possible strategy shift
Net Sales are expected to increase by 12.2 percent Y-o-Y (up 2.2 percent Q-o-Q) to Rs 308.7 crore, according to ICICI Direct.
Net Sales are expected to increase by 6.3 percent Y-o-Y (up 0.7 percent Q-o-Q) to Rs 3,198.5 crore, according to ICICI Direct.
Net Sales are expected to increase by 10.4 percent Y-o-Y (down 3.6 percent Q-o-Q) to Rs 3,837.8 crore, according to ICICI Direct.
Net Sales are expected to increase by 1.6 percent Y-o-Y (up 18.7 percent Q-o-Q) to Rs 2,565.4 crore, according to ICICI Direct.
Net Sales are expected to increase by 23.3 percent Y-o-Y (down 2.8 percent Q-o-Q) to Rs 15,972.9 crore, according to ICICI Direct.
Net Sales are expected to increase by 14.2 percent Y-o-Y (up 1.1 percent Q-o-Q) to Rs 13,610.9 crore, according to ICICI Direct.
Net Sales are expected to increase by 8 percent Y-o-Y (up 12 percent Q-o-Q) to Rs 2,820.3 crore, according to ICICI Direct.
Net Sales are expected to increase by 6.1 percent Y-o-Y (down 4.9 percent Q-o-Q) to Rs 1,236.9 crore, according to ICICI Direct.
According to data from the retail intelligence platform, sales of fast-moving consumer goods companies jumped in comparison to last year but categories like home care and personal care witnessed a downtrend.
Prices of commodities have now peaked out and there has been a 15-20 percent decline from peak prices in most commodities, according to a senior official.
Dabur and Marico, in their quarterly updates, reported a decline in margins. Sales volumes, too, remain impacted due to inflation and demand slowdown. Analysts expect other FMCG majors to also report a similar trend and expect a recovery only towards the second half of the year
Attrition continues to be high in sectors like IT (22%), educational services (13.11%), healthcare and pharma (12.25%) and ecommerce (11.04%) .
A reversal in commodity prices from their recent peaks, even as product prices have risen, could lead to a favourable situation for margins eventually