FMCG Q4 Results Preview - Volumes, Sales Growth Under Pressure, Recovery To Take Time: Nirmal Bang

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Early commentaries from some fast moving consumer good players like Marico Ltd., Dabur India Ltd. and Godrej Consumer Products Ltd. and our interactions with management of other staple companies as well as channel checks done in February 2024 and March 2024 suggest that the overall demand environment remained subdued during the quarter and has not seen any major improvement.While volume growth remained under pressure, it was largely led by the urban market, which was buoyant. But, the gap between urban and rural market has narrowed further in this quarter. Q4 FY24 is likely to witness significant YoY gross margin expansion for several FMCG companies due to deflation in raw material prices, but rising ad spends, modest realization growth vs preceding quarters and persistently tepid volume growth mean that cumulative Ebitda margin is likely to remain flat, with absolute Ebitda growing slightly ahead of revenue growth. As highlighted in our commodity cost note released in Feb-24, prices of raw materials such as vegetables and sugar remain elevated on a YoY basis.We are expecting our FMCG coverage universe to clock low single-digit revenue growth of 3.3% YoY..Click on the attachment to read the full report:.Life Insurance Q4 Results Preview - Expect To See A Mixed Trend; Margins To Remain Tepid: Nirmal Bang.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

FMCG Q4 Results Preview - Volumes, Sales Growth Under Pressure, Recovery To Take Time: Nirmal Bang

For the overall FMCG coverage, we expect Ebitda margin to remain flat YoY.

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FMCG Q4 Results Preview - Volumes, Sales Growth Under Pressure, Recovery To Take Time: Nirmal Bang

For the overall FMCG coverage, we expect Ebitda margin to remain flat YoY.

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