FMCG & Alco-Bev Q3 Earnings Preview - Rural Demand Struggles; Margin Pressures Continue: HDFC Securities
BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
Our fast moving consumer goods coverage universe is expected to deliver growth of 9/9% YoY in revenue/Ebitda in Q3 FY22 (versus 8/3% in Q3 FY21 and 12/9% in Q2 FY22). Urban discretionary demand continued to see momentum as mobility improved. Thereby, liquor and quick service restaurant companies should report healthy numbers.
However, rural demand continued to decelerate, owing to inflationary pressure and heavy base. We expect sharp volume deceleration in Q3 (demand pressure, grammage reduction).
Price hikes (quite aggressive versus past few years) were taken across categories and should contribute heavily to revenue growth. International businesses recovered as well with less impact of lockdown.
Most companies are in the process of refreshing their strategies for international businesses.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.