New CEOs positively impact stocks of FMCG companies like HUL, Britannia, Nestle & Marico

Of the 12 companies in the BSE FMCG Index, the sectoral Stock Returns (%) index for fast moving consumer goods companies, eight have had a new CEO in the past two years. Incidentally, the change at the top came at a time when companies were struggling to grow volumes in the face of low consumer demand and protect margins amid high inflation.



A change at the top positively impacted the stock prices of four companies — Britannia, HUL, Marico and Nestle. Companies such as HUL, Marico, Britannia, Godrej Consumer Products and Colgate Palmolive reported superior operating performance over the trailing four quarters characterised by double-digit revenue growth and improvement in operating margin. While Britannia was first to bring in a new head, Colgate was the latest to do it. The variation in the time of CEO appointments does not justify a comparison of companies’ performances.