TBC Capital presents an investment analysis of the FMCG sector

29 Nov, 2019
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TBC Capital presented the second analysis of the FMCG sector in the field of food and fast-food products, with the aim of reviewing the current state of the market and the development potential of the sector together with companies and potential investors.

"TBC Bank is a major partner bank for most of the companies operating in fast-moving consumer goods, and it maintains its leading position in terms of financing this sector. TBC's share in financing the FMCG sector is GEL 367 million,” said Levan Shavkatsishvili, head of TBC's corporate customer service department.

According to the survey, by the end of 2019, the volume of the FMCG sector will exceed GEL 9.4 billion, of which organized players — branded retailers — will occupy 28% of the market, which is 10% more than in 2016.

Local expenditure on food fast-moving consumer goods will increase to GEL 8.1 billion by 2019, while the direct expenditure of tourism and restaurants will reach GEL 1.3 billion in the same period.

"Our research provides a good basis for determining the growth potential of the sector. According to our forecast, sales of organized players will increase to GEL 5.5 billion over the next 5 years, which will increase the share of the organized market by 13% and will mean more than 600 new online stores.

If the growth in the previous years was mostly in the capital, according to our forecast, the organized market will be more active in the direction of the other regions, which is facilitated by growing tourism and high activity during the summer," said Tornike Kordzaia, head of TBC Capital research.

TBC Capital is a subsidiary and licensed company of TBC Bank, which offers investment banking services to its customers. Since 2017, TBC Capital has become part of TBC Bank's corporate and investment banking business. The main business directions of the company are financial consulting and credit, rating services, issuance of bonds and shares, investment research and brokerage activities.

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