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