Consumer Sector — Q2 FY25 Earnings Overview

Palm oil, wheat, and cocoa prices remain elevated; import duties on palm oil may persist, pressuring margins.

Existing and new players are increasing discounting and dealer incentives, potentially pressuring market share and margins.

Crude palm oil and tea prices rose 10% and 25% YoY respectively, impacting gross margins. Management is taking calibrated price increases but full pass-through may not be possible.

Analyst raised concern that 4-5% price hikes could dampen volume growth; management acknowledged balancing act but no specific elasticity provided.

Metro slowdown attributed to housing cost inflation and wage stagnation for non-salaried workers; management hypothesis but no quantified impact on sales.