Consumer-goods margins under pressure as costs bite
Volume growth is holding up, but profitability is being squeezed from both directions.
Listed consumer-goods companies are reporting resilient volumes but weaker margins, as raw-material costs and distribution expenses outpace price increases.
Management teams have been cautious about further price rises, wary of pushing price-sensitive shoppers toward cheaper alternatives.
The volume-price trade-off
The sector's challenge is familiar: defend market share without destroying the unit economics that make it viable.
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About the author
Ngozi Eze
Companies Reporter
Ngozi Eze writes for BusinessPress.
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