FMCG Q1 Results Preview - Commodity Inflation Pressurises Margins: ICICI Direct

FMCG products kept on shelves inside DMart. (Source: BloombergQuint)

FMCG Q1 Results Preview - Commodity Inflation Pressurises Margins: ICICI Direct

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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.

ICICI Direct Report

The fast moving consumer goods sector witnessed a high growth quarter on the back of lower sales in the base quarter, which was marred by country-wide strict lockdown.

Though Q1 FY22 also witnessed the adverse impact of a second Covid-19 wave and subsequent state-wise lockdowns, the impact on supply chain was minimal with industry, government and trade channel’s preparedness.

Similar to previous lockdowns, consumption of some discretionary and out-of-home categories were adversely impacted.

We believe detergent, cosmetics, skin care products, juices, carbonated drinks would have seen muted sales during the quarter.

On the other hand, packaged foods, edible oil, nutrition, immunity products would have continued the strong growth momentum.

Click on the attachment to read the full report:

ICICI Direct FMCG Q1FY22 Results Preview.pdf

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