Company unlikely to take up price cuts for flagship Parachute brand
Total expenses were at Rs 2,414.29 crore in the latest quarter as against Rs 2,163.32 crore a year ago
While lower sowing is a cause of worry, the government's decision to offer an increase in MSP may help the farmers boost their income and hence, their spending capacity
Last year, chocolate sales in India jumped 15.4% after the government, keen to win re-election, overhauled its national sales tax for many items
Further, tough market conditions have hurt small manufacturers, who, in turn, have contributed half towards the sliding growth in the sector
Both companies are also riding the digital wave when it comes to consumer engagement
The video has used kids in their campaign as key catalyst who have been promoting healthy habits
Delay in demand recovery and higher stock valuations mean low margin of safety, say analysts
Demand slowdown and high base compound concerns, though some companies views them as temporary headwinds
The current pace of growth is equal to what it was nearly two years ago
The industry is also expected to grow at 12-13 percent during the April to June quarter of the calender year 2019, according to Nielsen
Rising crude oil prices, promotional spends and limited pricing power to impact earnings
A break-up of business shows that 75% of a firm's turnover is led by volume growth, while 25% is price-led
Nielsen's forecast for the FMCG market is it will grow by around 12-13 per cent in the three months ended December 2018
Low crude and palm oil prices would give them the flexibility to improve volumes and margins
Ease in inflation amid drop in oil prices has prompted firms to defer price increases
While major companies in the FMCG sector have over the last two years clocked an average sales growth of over 6 per cent, the growth for the four underperformers is between 0.8-1.4 per cent
Thus far in September, the Nifty FMCG index underperformed the market by falling 8% against 2% decline in Nifty 50 index.
HUL, Jubilant FoodWorks, Dabur India, Nestle India, Britannia Industries, Godrej Consumer Products, Marico, and ITC were trading lower in the range of 2% to 5% on the National Stock Exchange today.
While some companies have seen margins improve, prices of key raw materials such as crude oil, titanium dioxide and copra are elevated (on a year-over-year basis) weighing on profitability of others