[ad_1]
SUMMARY
From Colgate-Palmolive’s commentary on ‘difficult market conditions’ to Nestle India MD talking about a ‘shrinking middle class’, this is all that top FMCG bosses and companies spoke about the demand scenario on ground.m
1 / 7Many Indian FMCG companies, from Hindustan Unilever, to Nestle India to Tata Consumer Products have reported September quarter results over the last few days. While the numbers have been divergent, the one common commentary that has emerged from the top management of these companies is the muted consumer demand, which is predominantly being led by the urban areas of the country, while rural is seeing a gradual recovery. Here is a look at what the managements of these companies said post their results:
2 / 7Nestle India MD Suresh Narayanan, speaking to CNBC-TV18 said that the company is currently witnessing a challenging external environment, along with muted consumer demand and high commodity prices. He also said that a “shrinking middle class” is impacting FMCG sales.
3 / 7Tata Consumer Products believes that most FMCG companies are indicating a slowdown in the urban market, which, according to the management, has been impacted by flooding and food inflation during the quarter. However, the company said that urban spending will return as government spending ramps up.
4 / 7Hindustan Unilever’s shares are also down nearly 7% in Thursday’s trading session as the company’s volume growth was below expectations for the quarter gone by. The management said that there is a gradual recovery in the rural demand, but urban growth is moderating. However, it attributed the urban slowdown largely to macro factors, adding that this may be temporary in nature.
5 / 7Colgate-Palmolive, which reported results on Thursday, October 24, said that while the Toothpaste volume growth of high single digit was in-line with the CNBC-TV18 poll estimate of 7% to 8% growth, it expects ‘difficult market conditions’ to persist going forward.
6 / 7Pidilite’s consumer business volumes grew 6% during the quarter, compared to expectations of 8% to 10% growth compared to last year. The management said that demand was impacted by rains in the beginning of the quarter but expressed optimism for the second half of the year as construction activity picks up.
7 / 7United Spirits’ Prestige & Above segment reported a decline in volumes for the September quarter, while expectations were for growth to range between 0% and 1%. Revenue for the popular segment also declined by 5% during the quarter. The management said a softer-than-expected demand environment contributed to the muted quarterly performance.
[ad_2]
Source link