Latest news with #FMCG
Times
a day ago
- Business
- Times
B&M shares slide as margin woes overshadow a good summer
Concerns over B&M European Value Retail's struggling grocery and household goods division, and pressure on margins, outweighed an otherwise solid sales performance in the first quarter. While warm weather and strong sales of garden furniture helped group revenue rise 4.4 per cent year-on-year to £1.41 billion in the 13 weeks to June 28, shares in the discount retailer fell more than 12 per cent on Tuesday — their lowest level since November 2016. Investors reacted sharply to the finer details. Like-for-like sales in the core UK business rose just 1.3 per cent, while fast-moving consumer goods (FMCG) sales — which includes snacks, cleaning products, baby care and toiletries — were in decline over the period. • Why B&M is the new middle-class shop of choice The company also flagged a squeeze on trading gross margins due to deflation in average selling prices across some general merchandise categories, though it expects this pressure to ease in the second quarter as new, higher-margin ranges are introduced. Analysts at Panmure Liberum said: 'Despite favourable trading conditions and soft comparatives, today's performance was, in our view, somewhat disappointing and does little to ease fundamental concerns around the health of the FMCG grocery channel.' The analysts were 'surprised by the softer tone around gross margin performance in that category. On this basis, fears of a potential margin reset may persist, keeping earnings volatility elevated — we suspect like-for-likes will struggle to maintain momentum for the remainder of the year.' Deutsche Bank also labelled the results 'disappointing'. Founded in 1978, B&M operates 777 B&M stores and 343 Heron Foods stores in the UK, as well as 135 B&M stores in France. Like others in the discount sector, it has faced intensifying competition and consumer pressure from the cost of living crisis, with both factors hitting profit margins and spending habits. • What's in Tjeerd Jegen's in-tray at B&M? Heron Foods posted a slight 0.4 per cent year-on-year decline in sales during the quarter, though momentum was stronger in France, where revenue rose 7.6 per cent, with like-for-like growth of 1.1 per cent. B&M said UK general merchandise sales increased on both a like-for-like and total basis, with particularly strong performances across garden, toys and DIY, despite price deflation. While FMCG sales remained negative for the quarter, the group said performance in health and beauty and cleaning categories had improved in June, 'following the improvements made in operational execution'. Work was continuing to strengthen its overall FMCG proposition, its bosses said. Tjeerd Jegen, the newly appointed chief executive, said: 'While B&M UK's like-for-like sales are growing, I see a significant opportunity and requirement to sharpen our commercial and operational execution as we move towards and beyond the golden quarter. 'Looking ahead, my focus is on building on our strong foundations, leveraging our market position and continuing to deliver exceptional value for our customers.' Jegen, a former Tesco executive, took over from the interim chief executive Mike Schmidt last month, following the departure of Alex Russo after three years in the role. The group said it remained on track to open 45 gross stores over the full year. Eighteen gross new B&M UK stores were opened in the first quarter. Half-year results for the 26 weeks to September 27 will be published on November 13, when B&M will provide full-year profit guidance. Shares in B&M, which have almost halved in value in the past 12 months, retreated another 7.2 per cent, or 18½p, to 239¼p in late-afternoon trading on Tuesday.
Time of India
3 days ago
- Business
- Time of India
Where to park money and where to create wealth now? Jyotivardhan Jaipuria answers
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , Founder & MD,, says despite uncertainty surrounding US tariffs and the stalled India-US trade deal, a focus on domestic opportunities is advised. Anticipated improvements in domestic demand, fueled by liquidity, interest rate cuts, and tax breaks, make the banking sector attractive due to its valuations. Cement stocks are also promising, with consolidation expected to boost pricing power and earnings over the next 18 you said, Trump's tariffs are the uncertain thing for the market just now and what is probably more critical is like one is the tariffs itself and the other is our tariff versus relatively other countries we compete with. So, at some point, if all the tariffs are going to be 20%, it is not great for US demand, it is not great for inflation in the US, and probably it leads to a slowdown in the on a very competitive basis, we do not lose out with some other country. At the moment, the way it is seeming, we probably will be better off versus a lot of other competitors. We are probably not going to lose out much on the tariff, but it is still a wait and watch because the India-US deal has been on the cards for a long time but still not finalised. In this environment, we are looking at two-three buckets. One is focusing on domestic things which are easier to play, which are less impacted by what happens to the US tariffs and within domestic, we have to remember that we have had easy liquidity, interest rate cuts, and a tax break for the to some extent, we probably will see improvement in domestic demand. We like the banking space more because of the valuations because that is one thing we have to keep in mind. In the last three-four years, most of the domestic names have seen a sharp rise in valuation. So, banks are one area we like. The other is cement, where a lot of cement stocks have not performed for the last two, two-and-a-half has been a consolidation in the sector and we think that will help pricing powers going forward and so the next 18 months will probably be good for cement companies in terms of their earnings as well as the share price, and that is the other domestic segment we are focusing on.: One of the reasons why FMCG has done well is that the stocks have been underperforming massively. Whenever markets start going down on a relative basis, FMCG starts to do well. The other thing is that as we look at the situation just now, monsoons are looking fairly good, cropping has been good, and it looks like the crop will exceed last year's number by a fair margin. We will have a record agricultural crop and when that happens, it will help rural demand. So, FMCG is going to be one of the gainers from rural demand and they will probably benefit from the same time, we have been quite negative on the consumer staple companies and the main reason for that has been valuation. We find it very expensive at these valuations even though these are great companies, and have a lot of the cash flow. The ROEs and ROCs are very high but just given where they trade on valuation, we have been avoiding it. From a structural perspective, as the consumer gets richer and per capita income goes up every year, then it probably doubles over the next six, seven, eight at that time, the share of wallet of consumer staples will go down and consumer discretionary will go up. For us, one way to play the consumer story in India has not been the staples but some of the discretionary names. That is why we have been quite cautious on the consumer staple side.I find the markets having a time correction good. We had quite a steep correction and the markets have seen a bounce-back since then. The macro in India is very good if you look at the current account deficit, fiscal deficit, the RBI monetary policy, inflation, and interest rates falling. The macro looks very good. We are the fastest growing economy on a GDP basis. At the same time, earnings are just the valuations are not cheap and earnings are not coming. We will probably end this quarter also with a single digit earnings growth which in some sense if you think about it, earnings are growing at less than nominal GDP growth. So, for the market to see a sustained rise, you probably see earnings need to start coming back. We need to start seeing double digit earning growth come back. But in the meanwhile, it is very good for us that we are going through a time correction because it helps absorb some of the recent gains. We have seen in the market and probably time correction will help valuations become a little cheaper and which probably makes it easier for the next bull run to general, the domestic story is relatively insulated from what happens to the tariff scenario and anything international has got a risk. Just to give you an example, we like pharmaceuticals. We think the pharma industry is good and over the next five years, we will have visible growth in the same time, the fact there is a threat of tariffs on pharma means that in the short term, you do not really know what this quantum of the tariffs will be and whether it will impact the pharma stocks and the pharma companies in a significant way or a very small way. So, you would rather have the tariff come and then you know what the tariff is, it is easier to evaluate how bad the scenario is going to be in terms of earnings before you really start to buy the same time, there are some stocks which we find very cheap and compelling. So, we have been buying IT but in general, I would say stick more to the domestic names in your portfolio and avoid things that can get impacted significantly by the US tariffs.
Mint
4 days ago
- Business
- Mint
Stocks to buy or sell: Dharmesh Shah of ICICI Sec suggests buying PFC shares tomorrow- 14 July 2025
Stock market news: The equity benchmark indices, Sensex and Nifty 50, fell for a third consecutive session on Friday, decreasing by nearly 1% due to substantial selling in IT, auto, and energy sectors amid a lackluster start to the earnings season. Uncertainties related to tariffs and mixed trends in global markets further contributed to the downturn, analysts noted. The Sensex dropped by 689.81 points or 0.83% to close at 82,500.47. Throughout the day, it experienced a decline of 748.03 points or 0.89%, reaching 82,442.25. Likewise, the Nifty 50 fell by 205.40 points or 0.81% to 25,149.85. Over the week, the BSE benchmark decreased by 932.42 points or 1.11%, while the Nifty 50 fell by 311.15 points or 1.22%. Dharmesh Shah of ICICI Securities expects Nifty 50 to gradually resolve higher and head towards 25,800 in coming month. Shah has recommended one stock to buy for short-term. Investors should consult experts before making decisions. Here's what he expects from Indian stock market next week, along with his stock recommendation. Equity benchmarks extended breather over second consecutive week amid lack of clarity on India - US bilateral trade deal. Consequently, Nifty 50 settled the week at 25,150, down 1.2% for the week wherein broader market relatively underperformed by losing >1.5%, each. Sectorally, IT, Defence extended losses while FMCG and MNC stocks relatively outperformed. The weekly price action formed a bear candle carrying lower high-low, indicating extended breather. We expect volatility to remain elevated amid progression of earning season coupled with Tariff related development wherein strong support is placed at 24,800 levels. Currently, index is undergoing healthy consolidation wherein over past 10 sessions Nifty 50 has merely retraced 50% of preceding 10 sessions up move. Slower pace of retracement while trading in the vicinity of 20 days EMA, highlights robust price structure. Hence, any dip from hereon should be capitalised to accumulate quality stocks with strong earnings as we expect Nifty 50 to gradually resolve higher and head towards 25,800 in coming month. a. All eyes will be on outcome of US-India bilateral trade deal coupled with progression of Q1FY26 earning season which will dictate the further course of action. b. Falling US Dollar index would act as boon for equities that would eventually result into FII's inflow. c. India VIX has extended losses and likely to close at one year low of 12, indicating participants anxiety at lowest level. Structurally, the formation of higher peak and trough while absorbing host of negative news around geo-political uncertainties coupled with clarity of trade tariff. Further, strong market breadth depict strength as currently 60% stocks of Nifty 500 universe are trading above 200 days SMA compared to last month's reading of 52% that bodes well for durability of ongoing structural up move. Dharmesh Shah of ICICI Securities recommends buying Power Finance Corporation Ltd (PFC) shares this week. Buy PFC shares in the range of ₹ 415-430. He has PFC share price target of ₹ 478 with a stop loss of ₹ 388. Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 11/07/2025 or have no other financial interest and do not have any material conflict of interest. The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
Entrepreneur
6 days ago
- Business
- Entrepreneur
Priya Nair to Become First Woman CEO and MD of HUL
She will succeed Rohit Jawa, who will step down on July 31, 2025, after a two-year tenure. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Hindustan Unilever Ltd (HUL), India's fast-moving consumer goods (FMCG) company, announced on Thursday that Priya Nair will take over as its CEO and Managing Director from August 1, 2025. This marks a historic moment, as Nair will become the first woman to lead the company in its over 90-year history. Currently serving as President, Beauty and Wellbeing at Unilever, Nair has been appointed for a five-year term. She will succeed Rohit Jawa, who will step down on July 31, 2025, after a two-year tenure. Jawa, who became CEO and MD in 2023, is stepping aside to "pursue the next chapter in his personal and professional journey," the company said. Nair will also join the HUL Board, subject to approvals, and continue as a member of the Unilever Leadership Executive (ULE). "Priya has had an outstanding career in HUL and Unilever. I am certain that with her deep understanding of the Indian market and excellent track record, Priya will take HUL to the next level of performance," said Nitin Paranjpe, Chairman of HUL. Nair began her journey at HUL in 1995 and has held key roles across sales and marketing. She has been instrumental in shaping the company's home care, beauty, and personal care segments, and held leadership roles including Executive Director for Home Care and Beauty & Personal Care. Reflecting on Jawa's contribution, Paranjpe added, "On behalf of the Board of HUL, I would like to thank Rohit for leading the business through tough market conditions and strengthening its foundations for success." With Nair at the helm, HUL is poised to enter a new era of leadership and innovation.
Khaleej Times
08-07-2025
- Business
- Khaleej Times
NRIs in UAE: Is opening a grocery store in India a good idea?
Question: I have been working for a supermarket in the Gulf for the past seventeen years and I am planning to return to India to start my own outfit in the retail trade. I am worried about the competition from online platforms as well as from smaller retail stores. I need some information on the impact they are making on the retail trade in India. ANSWER: Initially, quick commerce platforms started off as a top-up service for last minute purchases of groceries and small ticket items. However, these platforms have emerged as the fastest growing sales channel, even in the space of premium portfolios. In the past, just one-third of shoppers in the metros resorted to online platforms for their daily shopping. At present, 87 per cent of shoppers use the quick commerce platforms as they provide convenience and instant delivery. This is despite the fact that these platforms offer discounts of just 6-9 per cent, whereas supermarkets give more attractive discounts of 13-18 per cent. According to market analysts, the quick commerce grocery market is likely to grow threefold by 2027 with an estimated turnover of Rs.1.7 trillion. Their reach is likely to extend to all towns with a population of half a million or more. It must also be mentioned that India has 13 million kirana stores which are able to hold their own despite the growth of quick commerce platforms. Leading FMCG companies are going out of their way to improve trade relationships with small retailers by supplying more premium products and offering them higher margins. These large multinational companies have reconfigured their supply chain and distribution infrastructure for promoting general trade and creating value offers with merchandising support. Question: Cyber attacks are becoming common these days. Is India geared up to meet this threat? ANSWER: All efforts are being made in India to meet the serious challenges posed by cyber threats. Generative AI is being used to help create stronger and swifter counter measures which will make the internet safer to use. While companies create tools to tackle cyber threats, it is equally important for users of the internet to take effective measures to identify malicious and fraudulent content. Unlike the physical world where people use their instincts to identify something which is dangerous, the online world does not have a parallel. State-sponsored cyber threats are also increasing as Governments possess capabilities which cannot be matched by private players. The Indian Government is taking all steps to provide cyber security as it has partnered with well-known international companies to build a strong workforce which is well trained and skilled. The recent increase in geopolitical tensions has made the Indian Government take strong and measured steps to counter this threat. Question: Creation of additional jobs and boosting exports are the two objectives of the Indian Government. Have these objectives been achieved while having a 6.4 per cent growth rate in GDP? ANSWER: An average growth rate of 6.4 per cent during the past three years has helped small and medium enterprises to effectively boost the industrial sector and push exports to a higher level than was anticipated. This export oriented growth spearheaded by the MSMEs has ensured that Indian industry has entered the global supply chain which has recently been weakened by geopolitical factors. This has been galvanised by the 14 production-linked incentive (PLI) schemes which so far have attracted investments of Rs.1.76 trillion and created more than 1.2 million jobs. The cumulative incentive amount under the PLI scheme disbursed so far stands at Rs.215.34 billion. The schemes cover large scale electronics manufacturing, IT hardware, medical devices, pharmaceuticals, telecom and networking products, food processing, speciality steel, automobiles and auto components, drones and drone components. The PLI scheme for food products has generated sales of Rs.3.8 trillion. Companies which are involved in food processing have given a boost to raw material procurement, benefiting under-developed and rural areas, while supporting farmers' income. Therefore, while the GDP growth rate has been sustained at an impressive rate of 6.4 per cent, the main benefit to the Indian economy has been in terms of higher growth in exports and creation of new jobs. The writer is is a practising lawyer, specializing in corporate and fiscal laws of India.
