FMCG Q3 Preview - Volume To Remain Subdued; Pricing Will Drive Topline Growth In Near-Term: Nirmal Bang
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Nirmal Bang Report
In continuation to our preview update for consumer sector, we now present our Q3 FY22 estimates for our fast moving consumer goods sector universe. While urban markets are expected to lead growth in Q3 FY22, rural resilience has weakened.
For the FMCG coverage universe, we expect volume growth momentum on a two-year compound annual growth rate basis to slightly taper off in Q3 FY22 or at best sustain at Q2 FY22 level. Within our FMCG coverage, only Dabur Ltd. is expected to deliver a double-digit two-year volume CAGR.
To counter elevated inflationary pressure, companies have taken further pricing actions during the quarter. Thus, in Q3 FY22, our FMCG universe is expected to see a two-year revenue CAGR of 8.5%.
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