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Rural demand may trip FMCG cos
Mint Mumbai
|December 27, 2023
Investors in stocks of fast-moving consumer goods (FMCG) companies are likely exiting 2023 with mixed feelings. Out of two crucial developments-the extent of margin recovery and rural demand revival only the former played out as expected.
Rural demand remained sluggish, hurting volume growth. This, in turn, impacted the revenue performance as softening raw material costs restricted further price hikes. For perspective, Hindustan Unilever Ltd (HUL), which derives a significant chunk of revenue from the rural markets, clocked sales growth of 3.6% year-on-year in the three months ended September (Q2FY24), the slowest in the past nine quarters at least.
Diese Geschichte stammt aus der December 27, 2023-Ausgabe von Mint Mumbai.
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