jueves, 14 de noviembre de 2024

FMCG growth VS shareholder returns

 
The highest ranking of consumer goods companies based on 2023 revenue have been recently announced.
Top 100 consumer goods companies 2024
 
Over the past year, the companies on this list have balanced cost-saving measures with bold investments in technology, AI, and consumer engagement to improve efficiency and stay competitive amid challenges like inflation, supply chain issues, and shifting consumer priorities. 
The largest FMCG companies in the world have invested in OpenAI’s GPT-4, Instacart etc, piloted VR for R&D, used 3D tech for better retail shelving, launched new digital platforms or acquired new enterprises to name a few initiatives that have contributed to its growth.
 
However, this has not translated in the performance of its shares and the trajectory of most of this companies have been spiraling down leading to negative returns to shareholders over the last 365 days.
 
It can be surprising that the size and growth of these companies does not match their performance in the stocks market, and it would be an interesting debate to understand why.
 
Trust? Expectations? Overall macro-economic performance? ….