Wednesday, December 25, 2024
HomeBusinessFood items will be expensive! For this reason FMCG companies will increase prices - Top News Bulletin

Food items will be expensive! For this reason FMCG companies will increase prices – Top News Bulletin


eating and drinking Goods can be expensive. In fact, the prices of goods used by FMCG companies such as palm oil, coffee and cocoa have increased. To compensate for the increased costs and declining margins, FMCG companies will increase the prices of their products. This can increase your household budget. Hindustan Unilever (HUL), Godrej Consumer Products Ltd (GCPL), Marico, ITC and Tata Consumer Products Ltd (TCPL) have expressed concern over the decline in urban consumption. According to experts, the share of urban consumption in the total sales of FMCG sector is 65-68 percent. “We think this is a short-term setback and we will recover margins through prudent price increases and cost stabilization,” GCPL Managing Director and Chief Executive Officer (CEO) Sudhir Sitapati said on the sidelines of the second quarter results announcement. GCPL, which sells products like Cinthol, Godrej Number-One, Hit, has delivered a stable quarterly performance despite fluctuating oil prices and subdued consumer demand in India.

The special thing is that the rural markets, which were lagging earlier, have maintained their growth pace as compared to the urban markets. Dabur India, another FMCG company, also said the demand environment in the September quarter was challenging, including 'high food inflation and subdued urban demand'. The maker of Dabur Chyawanprash, Pudin Hara and Real Juice has reported a 17.65 per cent decline in consolidated net profit during the quarter at Rs 417.52 crore. During this period, the company's operating income declined by 5.46 percent to Rs 3,028.59 crore.

See also  Great opportunity to travel by flight for just ₹ 1199, booking has started, know when you will be able to travel - Top News Bulletin

Nestle will also increase the prices of its products

Recently, Nestle India Chairman and Managing Director Suresh Narayanan also expressed concern over the decline in the FMCG sector and said the 'medium segment' is under pressure as high food inflation has hit household budgets. Regarding the rise in food inflation, Narayanan said there has been a 'sharp rise' in the prices of fruits and vegetables and oil. He said, if it becomes difficult for companies to manage the cost of raw materials, then it may lead to increase in prices. We find ourselves facing a difficult situation as far as coffee and cocoa prices are concerned. Nestle India owns brands like Maggi, Kit Kat and Nescafe. The company's sales growth has been a modest 1.2 percent. Another FMCG company ITC has reported a decline of 0.35 per cent in margins due to increase in costs. The company owns brands like Ashirwad, Sunfeast, Bingo, Yippee.

Companies suffered losses due to food inflation

Tata Consumer Products Ltd. TCPL Managing Director and Chief Executive Officer (CEO) Sunil D'Souza also said consumer spending in urban areas has been affected. Speaking at the announcement of the company's results for the September quarter, D'Souza said, I believe that food inflation is probably higher than we think and its impact is much greater. HUL CEO and Managing Director Rohit Java said the market volume growth has been sluggish in the quarter. Java said, the situation is quite clear that urban growth has been affected in the recent quarters. The rural sector continues to grow slowly and is now ahead of the urban sector for the last few quarters and this time too it is ahead of the urban sector. HUL owns brands like Surf, Rin, Lux, Ponds, Lifebuoy, Lakme, Brooke Bond, Lipton and Horlicks. HUL's consolidated net profit has declined by 2.33 percent in the September quarter. Similarly, Marico has also reported year-on-year growth in demand that is double in rural areas compared to urban areas.

See also  Big news for those buying goods-carrying electric three-wheelers, the government took this decision on subsidy - Top News Bulletin



Image Credit: India-Tv.

Top News Bulletin
Top News Bulletinhttps://topnewsbulletin.online
Top News Bulletin was founded by RankMagus, a top digital marketing agency in Kolkata, India, with a clear mission: to provide timely, accurate, and comprehensive news coverage. We believe staying informed is not just important—it's essential in today’s fast-paced world. That’s why we’re committed to delivering breaking news, in-depth analysis, and insightful commentary on a variety of topics, including politics, business, technology, sports, culture, and more. Our team of dedicated journalists and editors works around the clock to ensure that you get the most relevant and accurate news when you need it. At Top News Bulletin, we go beyond the headlines to bring you a deeper understanding of the stories shaping our world. With a commitment to journalistic integrity, we strive to maintain the highest standards of accuracy, objectivity, and fairness in all of our reporting. Whether you're seeking the latest developments in global politics, the newest trends in technology, or thoughtful perspectives on current events, Top News Bulletin is here to keep you informed and engaged. Stay connected with Top News Bulletin—your trusted source for real news, real fast.

Similar Articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular