FMCG companies margins are expected to remain under pressure because the commodity prices continue to remain high year on year. The companies will continue to increase rates as they have been taking price hikes in a staggered manner.
Commodity prices have came down from the peaks but still remain elevated compared to last year which will be affecting the margins for at least a quarter.
Hindustan Unilever told its investors that the FMCG prices will remain higher and they will continue to take price hikes of its products even as the market growth has moderated due to inflation.
Parle products said that they will not make further price hikes as the raw material prices have cooled off. Emami, isn the stand that correction input costs will help the company but it will wait for commodity prices to stabilize before taking any pricimg decisions.
FMCG companies saw urban and rural demad decline in may compared to april because consumers tempered purchases due to increasing prices. According to Bizom's data FMCG sales went down to 16.5%.
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