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Operating Profit Growth Of 5% Expected For CPG Sector In 2019: Moody's

Moody's has given a relatively positive outlook for the packaged-goods, food, and consumer durables sector in 2019, anticipating operating profit growth of 5% therein.

“The positive 2019 outlook on globally diversified packaged-goods companies in EMEA and the region’s consumer durables sector is largely a product of successful cost-cutting, which will drive operating profit growth," commented Lorenzo Re, vice-president – senior analyst at Moody’s.

“Conversely, the stable outlook on Europe’s regionally focused packaged-goods companies reflects slowing organic profit growth, as companies struggle to cope with changing consumer habits, strong competition, and rising raw-material prices,” added Re.

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