Marketers of consumer goods should focus on volumes over margins
The Ebitda (earnings before interest, tax, depreciation and amortization) margins of most consumer-goods companies have surpassed their pre-covid levels, aided by cost efficiencies. The quality of earnings of most companies has also improved materially, with a notable rebound in gross margins since the lows of September 2023. However, FMCG volume growth remains subdued and is…