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FMCG Sector: There will be pressure on FMCG companies even in the second quarter, know how business will be?

Inflation Pressure in FMCG: For the FMCG company, which makes everyday products, there may be a crisis situation in the second quarter as well. Notwithstanding the easing of inflationary pressure on the supply of raw materials for the FMCG industry, manufacturers are apprehensive that its impact on prices and margins will continue in the current quarter.

Which companies will be affected?
Listed FMCG companies HUL, ITC, Godrej Consumer Products, Nestle, Dabur and Britannia reported mixed results in the last quarter of April-June, impacting their margins and volume decline in some categories. also came

There may be a decline in the demand of rural areas
FMCG companies expect volumes to continue to decline in the rural sector as well. However, from the third quarter of the current financial year 2022-23, some stabilization in business and improvement in demand is expected.

Price hike in last quarter also
Companies like Britannia Industries have increased prices in the last quarter, but that too is not able to neutralize inflation. However, in the current quarter of July-September, it will be covered to a great extent.

Know what the CEO of the company said?
Varun Berry, managing director of Britannia Industries, recently said that the required price hike could not be done during the quarter. This will be done in the second quarter. At the same time, when asked about inflation, Mohit Malhotra, Chief Executive Officer (CEO) of Dabur India recently said that the inflation will not come down in the second quarter as well and there will be a reduction in margins.

Godrej net profit down
Sudhir Sitapati, Managing Director and CEO, Godrej Consumer Products, said sharp margin recovery is expected from the second half with the easing of inflationary pressures. The consolidated net profit of Godrej Group’s FMCG arm fell 16.56 per cent in the first quarter.

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