Gross and operating margin pressure likely on the back of raw material inflation and investment behind brands
Consumers are unwilling to spend on non-essential items and the sale of personal care products in the country reflects this trend, shows data from market intelligence platform Bizom.
The legal fight erupted between the two companies after Sebamed released print advertisements targeting Lux, Dove, Rin and Pears - all of them are HUL brands.
Higher EBIDTA margins in India supported the performance of Godrej Consumer
Falling palm oil prices afforded FMCG companies the luxury of driving soap sales through discounts. That may not last for long
India's largest multinational flexible packaging materials and Solution Company Uflex Limited has reported a 22% rise in consolidated net profit for Q4 FY 2016-17 as compared to the same period in the previous fiscal.
Castorseeds bold and castoroil commercial firmed up at the Vashi oils and oilseeds wholesale market here today following sustained demand from soaps and shippers industries.
Setting a target of April 1, 2017 for rollout of the Goods and Services Tax, the government today unveiled a detailed roadmap for its implementation and said it is aiming for an optimal rate of taxation though the final decision will be taken by the GST Council.
According to a CNBC-TV18 poll, the FMCG major is seen reporting net profit at Rs 996 crore in Q4FY16, marginally down by 2 percent from Rs 1018 crore in corresponding quarter last fiscal. During the period, revenue may rise 4 percent at Rs 7990 crore against Rs 7675 crore on annual basis.
Herbal wellness major Himalaya Drug Company is looking to double its sales turnover to Rs 4,000 crore in the next four years as it sharpens focus on wellness, babycare and personal care portfolio.
A statement from the Mumbai-based institute however did not share the investment details such as the quantum of stake being sold to Premji Invest and the price at which the sale has been concluded.
Major dampener in the last quarter is likely to be volume growth, estimated to be around 5-7 percent. Volumes may be slightly higher due to price cuts in certain major categories. In Q3 FY15 itself, soaps and detergents saw price cuts. Shampoos, which comprise 10 percent of total sales, saw 20-30 percent price cuts in Q2.
FMCG company Jyothy Lab's fourth quarter net profit slumped 57 percent year-on-year to Rs 12 crore, while sales rose 24 percent to Rs 272 crore.
Varun Lohchab, managing director and co-head of research, Religare Capital Markets, says that FMCG major Hindustan Uniliver Limited (HUL) is likely to post muted volume growth in the fourth quarter on back of weak signs that can be witnessed in personal care, soaps and detergent segments.
There may have been some slowdown in discretionary spends by consumers, growth across Godrej Consumer Products' key categories -- personal care, hair care and household insectisides -- remains strong, according to a top company official.
The new rules for packaging for consumer goods that were passed by the parliament last year will finally be applicable from tomorrow. Products across 19 categories will now have to conform to set pack sizes. As a result of the new rules prices of most consumer goods will go up by 5-10 percent, reports, CNBC-TV18's Pavni Mittal.
Although, the depreciating rupee has been a cause of concern for many sectors, A Mahendran, MD, Godrej Consumer Products said that its impact would be very limited on the company‘s business. In an interview with CNBC-TV18, he further added that changes in the packaging norm is not expected to dent their profitability.
Expect to pay more for your favourite soap soon. Godrej Consumer Products, for instance, plans to raise soap prices further given continued commodity cost pressure, like palm oil, which is a key input.
In a Budget that raised fears of furthering inflationary pressures, Finance Minister Pranab Mukherjee today hiked excise duty and service tax by 2% across-the-board to raise Rs 45,940 crore while offering marginal relief to individuals in income tax foregoing Rs 4,500 crore.
FMCG stocks have been long considered as a defensive investment bet when the overall markets are in turmoil. The sector played its role to perfection in 2011. While the broader Nifty index has slipped 24% from its close on Dec 31, 2010, the CNX FMCG index is up 9%.
FMCG companies in India have been battling high cost of raw materials for several quarters. Hindustan Unilever raised prices across several product categories over the last few months to offset some of the cost pressures and shore up margins.
Even as there is a talk of a possible slowdown in consumer spending amid continued high inflation and the stock markets are in turmoil, FMCG companies have been slowly raising product prices, especially in soaps & detergents and personal care products.
Fast moving consumer goods major Hindustan Unilever and local rival Godrej Consumer Products is likely to get some respite from declining margins due to a drop in prices of palm oil, a key raw material for their soaps.
Diversified business firm ITC, which sells Fiama Di Wills brand of personal care products, today said it is expanding the brand to men's grooming products segment.
Personal care products maker Godrej Consumer Products Ltd plans to hike soap prices by 4-5%, starting April, in an effort to battle mounting raw material costs, a top official told Reuters on Tuesday.