CORPORATE WINDOW: Profit and ‘shrinkflation’

Amid consumers’ continuous struggle to survive under rising costs of living and unaffordable utility bills, essential goods makers must be upbeat about robust sales and profits in 2023. Manufacturers’ shining results usually highlight sales, profit and loss, inventory losses, finance costs, gross profit, etc., but the volumes of their various products remain missing from their balance sheets. Product-wise volumes can give a clear picture of whether the companies are actually feeling the pinch of squeezing the purchasing power of consumers who are continuously limiting their purchases as per their requirements or the brisk sales figures are being achieved based on the increase in goods’ prices. However, consumer goods manufacturers reckon high inflation and rupee-dollar parity are biting their financial health, compelling consumers to curtail non-compulsory expenses.