Analyst Pin-board Vietnamese FMCG producers are expected to continue to show a positive sales outlook in 2022.
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· FMCG producers continue capturing the increasing trend of FMCG consumption despite of Covid-19 pandemic, resulting in a rosy outlook for top-line performance in 2022. In detail, local FMCG producers such as MSN, KDC, DBC or Nova Consumer will be one of the most beneficiaries from this trend, in lights of 1) more favourable selling price compared to imported FMCG products; 2) more familiar with the taste of Vietnamese consumers; and 3) lower number of imported FMCG products due to potential global supply chain disruption. · Total sale growth of FMCG producers is expected to present the highest growth rate among the year in 3Q2022. To explain, thanks to the spread of Covid-19 vaccine, on-premise channel is expected to show a strong recovery in 2022. The on-premise activities was shut down due to Covid-19 pandemic in 3Q2021, thus 3Q2022 sales will illustrate a strong growth thanks to the low-base. We expect to see FMCG producers ‘sales growth to reach a high level in 2022, then normalize in 2023. |
However, rising input costs still put pressure on the profitability of FMCG producers. We expect that large companies who own a close value chain, and diversified product portfolio will easily mitigate the negative effects of rising cost as well as passing the higher cost into selling price. Together with the stronger growth in revenue and the advantage of economic of scale as the FMCG giants, their profit growth might show a light positive sign in 2022
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