Food: Margins stabilize; recent budgetary measure concerns loom – By JS Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Based on the cumulative figures of 8 listed food companies, we review food sector&rsquo;s profitability for Jun-2024 quarter. Despite 5% YoY higher sales and steady margins, sector&rsquo;s bottomline contracted 10% YoY, owing to higher operating expense and financial charges.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We also analyse the listed dairy business companies separately, namely NESTLE, FCEPL and FFL, which cumulatively witnessed decline in sales, while FFL outpaced peers.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We expect further decline in volumes for the aforementioned segment from 3QCY24 as the gap between branded and unbrand...