Inflationary impact on FMCG price and marginto continue in Q2
   Date :15-Aug-2022

 FMCG price 
Business Bureau
INFLATIONARY pressure on some raw material inputs for the FMCG industry is abating but the manufacturers expect its impact on price and margins to continue in the current quarter.
In the April-June quarter, listed FMCG companies including - HUL, ITC, Godrej Consumer Product, Nestle, Dabur and Britannia delivered mixed results, reporting impact on their margins and mostly, a drop in volume in some categories.
FMCG companies also expect volume decline to continue in the rural side but see some stabilisation in the business and recovery in demand, starting from the third quarter of FY23.
Companies such as Britannia Industries said that it has taken necessary price increases in Q1 which were really not covering inflation at this point in time but a good part of this will be covered by the July-September quarter.
“We were not able to take the entire price increase during this quarter. We have taken some price increases in the first quarter and we will complete that in Q2 of this year,” said Britannia Industries Managing Director Varun Berry during recent earning while responding to a query on near-term price increase.
In April-June, Britannia reported a 13.24 per cent decline in consolidated net profit to Rs 335.74 crore while its sales were up 8.74 per cent to Rs 3,700.96 crore.