Page 12 - Fmcg Companies

FMCG industry witnesses consumption slowdown in the Dec quarter: Report

The country's Fast-moving consumer goods (FMCG) industry witnessed a consumption slowdown in the December quarter, with an overall "negative" volume growth, as consumers continue to reel under inflationary pressure, says a report. According to the report released by data analytics firm NielsenIQ on Thursday, in October-December, the FMCG industry grew 7.6 per cent in terms of value but its volume growth was (-) 0.3 per cent. "... Overall FMCG volume growth is negative, the absolute values, as well as volumes, continue to be above pre-Covid levels across markets," it said. The rural markets declined 2.8 per cent registering the sixth consecutive quarter with negative volume growth, while the urban market maintained stable positive growth of 1.6 per cent. In the retail space, Modern Trade channels maintained a double-digit value growth of 23.3 per cent and volume growth of 12.6 per cent on a year-on-year basis. While the FMCG sales from traditional trade channels such as Kirana stor

Jyothy Labs consolidated profit jumps 77% to Rs 67.39 cr in Dec quarter

FMCG firm Jyothy Labs Ltd has posted a 77.25 per cent jump in its consolidated net profit at Rs 67.39 crore in the third quarter ended December 31, 2022. The company had posted a consolidated net profit of Rs 38.02 crore in the same period last fiscal, it said in a regulatory filing. Consolidated revenue from operations was at Rs 612.67 crore during the quarter under review as compared to Rs 539.03 crore in the year-ago period, it added. "The business has been resilient in spite of high commodity inflation impacting the consumption across categories. We have been focussed only on execution to drive higher operating revenues and manage margins in the inflationary environment," it said. The company said it has focussed on a strategy to build scale and gain market share backed by enhanced distribution, including reaching out to newer geographies, increase brand visibility and product innovation initiatives. "We continue to drive execution-led growth to build scale. This will deliver

HUL Q3 results: Net profit beats estimates, royalty to parent bumped up

FMCG major cautiously optimistic on commodity prices, sees rural slowdown bottoming out

FMCG industry hopes to recover lost volume, to shrug off shrinkflation

Shrinkflation or reducing the size or quantity of a product while keeping the price unchanged was a little-known term in India but a surge in raw material costs following the war in Ukraine pushed several FMCG companies to resort to such a practice to ensure there is no impact on the fragile recovery in demand. And when they exhausted all options, FMCG (Fast Moving Consumer Goods) companies raised prices. Now, they are hoping to recover the lost ground in 2023, with a recovery in margins and volumes, especially from the distressed rural areas amid softening commodity prices. FMCG companies are "cautiously optimistic" and expect the rural market, which accounts for more than one-third of the overall sales, to bounce back in 2023 riding on a good harvest season, government impetus, and improvement in farm income. Besides, they expect the tailwinds of emerging channels like modern trade and e-commerce driving urban demand, and from a rise in premium discretionary categories. Besides, t

Dabur India promoters sell 1% stake through block deal to finance ventures

" The purpose of doing this transaction is to raise funds for financing some ventures in the private hands of the Burman family," the exchange filing said

TMS Ep327: Reliance FMCG, Byju's pains, Markets, EAGLE Act

Is FMCG the new battlefield between Ambani and Adani? Is Byju's experiencing growing pains? Will US Fed's hawkish pivot push Sensex to 58,000? How will EAGLE Act help Green Card seekers? Answers here

Marico to acquire Vietnamese personal care brands 'Purit de Prvence', 'liv'

Marico on Friday said it will acquire Vietnam-based Beauty X Corporation, which owns female personal care brands 'Purit de Prvence' and 'liv', in an all-cash deal for 493 Billion Vietnamese Dong (about Rs 172 crore). The move will help the homegrown-FMCG major to expand its presence in Vietnam. Its wholly owned subsidiary, Marico South-East Asia Corporation (MSEA) has entered into a definitive agreement to acquire 100 per cent of Beauty X Corporation, a firm which operates in the beauty and personal care space offering products such as shower gels, shampoos, conditioners, face wash and lotions among others. "The transaction will expand Marico's presence in the female personal care segment in Vietnam, with an offering of a range of premium and differentiated hair care and skin care products, while also realising various operational synergies," the company said. The transaction is expected to be completed by March 31, 2023, subject to requisite regulatory approvals and customary clos

New norms likely to hit demand, keep CG Consumer stock under pressure

The new norms will make it mandatory for ceiling fans to have star ratings, as is currently the case with air conditioners and refrigerators

FMCG makers keep close watch on softening commodity prices on some items

Leading FMCG companies say they are keeping a close watch on prices of major commodities, which have fallen in case of some items like palm oil, but the decline has not been "secular and broad-based". While prices of palm oil have eased and sugar is stable, FMCG firms pointed out that rates of some other major items including wheat are still firm and hence they would wait and watch before taking any call on reducing the price. Softening of commodities prices will help the FMCG firms in improving their profit margins and also some elbow room to pass on the benefits to consumers by lowering the MRP (maximum retail price) of their products. Nestl India Chairman and Managing Director Suresh Narayanan said the company is watching the situation. However, he said softening in commodity prices is not secular and broad-based. "We will watch the situation and evaluate our next step. The price decline in commodities is not secular and broad-based," Narayanan told PTI on the sidelines of an ev

Rural demand for FMCG dips 17% in Nov as post-festive consumption slows

Urban demand also hit, but not as badly; Overall FMCG sales decline 15.3% MoM and 2.7% YoY

With markets near all-time highs, which sectors should you bet on?

The index has rallied over 20% from its 52-week low led by metals, financials and FMCG shares. Do these sectors have enough legs to take the indices further higher or is it time for sector rotation?

Tata's Bisleri International buyout may be biggest in India FMCG space

A majority stake for Rs 6K-7K cr to allow TCPL's expansion in beverage space

Tata Consumer to buy Bisleri International for Rs 6,000-7,000 crore: Report

Ramesh Chauhan, chairman of Bisleri International, does not have a successor to take Bisleri to the next level

India Inc wants to 'wait and watch' before responding to $8 Twitter plan

The companies are currently wary of adopting an aggressive marketing strategy on Twitter and want to first see where the new leadership takes the micro-blogging platform

National with a regional twist: FMCG majors tweak product line-up

HUL also has different formulations of Surf Excel for different parts of the country as the water differs across regions

Sembcorp acquires 100% stake in GIP-backed Vector Green for Rs 2,780 cr

Vector has a total portfolio of 583 Mw across 13 states; deal will take Sembcorp's gross renewable assets in India to 3 Gw

FMCG makers expect margins improvement and comeback of rural sales from Q3

The FMCG industry expects an improvement in its margins and hopes to make a comeback from the rural market from the third quarter, though it witnessed pressure on volume in the September quarter as high inflation persists. Makers of fast moving consumer goods (FMCG) are now seeing green shoots of recovery with the onset of the festive season and a good monsoon and crop harvest in the rural areas. In the July-September quarter, listed FMCG companies, including HUL, ITC, Dabur, Nestle, Tata Consumer, Britannia and Marico, reported pressure on their margins on similar lines as the preceding quarter and said the demand environment remained challenging with inflation impacting consumption. However, as the commodity prices of palm, khopra etc have softened, FMCG companies expect a sequential improvement in their gross margins and mid-single-digit volume growth. In the September quarter, FMCG companies reported a price-led growth in their top line. While in some segments, FMCG makers such

FMCG companies watch rural demand with bated breath as pain persists

In October, FMCG sales in rural areas stood at 0.8 per cent while urban sales declined 0.1 per cent against September, according to data by Bizom- a retail intelligence platform

Indian firms outpace parent companies in valuations, shows data

Besides valuation differential, the Indian market is considered to be one of the key markets for most of these MNCs

As rural demand weakens, FMCG distributors offer more credit to retailers

The frequency with which distributors procure stocks from companies has reduced