Godrej Industries Group’s FMCG arm GCPL said it expects a "flattish" earnings growth in the domestic market in the September quarter as higher palm oil prices added to input costs. "Palm input costs have been rising since March and have risen in the high teens as of date.
How will rising palm oil prices affect FMCG?
Leading FMCG players expect rising palm oil prices, higher input costs and increased advertising and promotion expenses to impact their margins and profits in the September quarter.
Why are palm input costs rising?
"Palm input costs have been rising since March and have risen in the high teens as of date. Management has decided not to pass on the entire cost hike to consumers in one step and decided to continue investments on the long-term growth initiatives like rural van programme, new category development etc," it said.