FMCG Companies Face Margin Declines Amid Rising Costs and Weak Urban Demand
Leading FMCG companies report decreased margins in the September quarter due to rising input costs and food inflation.
Prominent companies are concerned. HUL, Godrej Consumer Products, Marico, ITC, and Tata Consumer Products are among them.
Many leading FMCG companies reported a decline in their margins. This happened in the September quarter.
The drop is mainly due to rising input costs.
Food inflation has also played a role. As a result, urban consumption has slowed down.
Prices for some commodities have increased.
This includes palm oil, coffee, and cocoa. Some FMCG companies expect further price hikes.
Prominent companies are concerned. HUL, Godrej Consumer Products, Marico, ITC, and Tata Consumer Products are among them.
They are worried about decreased spending in urban areas. Industry experts note that the urban segment makes up 65-68% of total FMCG sales.
GCPL, Godrej No. 1, and HIT performed steadily. They faced challenges from rising oil costs. Consumer demand in India remains weak.
Dabur India described the demand environment as challenging. This was also true during the September quarter.
