Marico clocks faster-than-expected recovery in Q3
Jan 04, 2021
Mumbai (Maharashtra) [India], Jan 4 : Fast-moving consumer goods major Marico said on Monday its third quarter ended December 31 was characterised by a faster-than-expected recovery in consumer sentiment aided by the festival season and a declining Covid-19 graph.
The company witnessed strong performance across its portfolio with general trade continuing to grow healthily and rural markets staying ahead of urban, it said adding the numbers will come after its board of directors approves unaudited consolidated and standalone financial results.
In the new age channels, while e-commerce continued the stellar run, modern trade after a soft first half fared better in Q3.
The India business delivered a strong performance with double-digit volume growth. Revenue growth was in tandem with volume growth.
The foods portfolio continued to witness exponential growth in line with the near-term aspiration, backed by strong performance in both the base foods and the new product launches.
There was a steady revival in discretionary categories with premium personal care portfolios witnessing improving trends sequentially but still posting a modest decline on a year-on-year basis, said Marico.
The international business had a resilient quarter with high-single-digit constant currency growth, led by double-digit constant currency growth in Bangladesh and recovery in few other markets.
The quarter was also characterised by inflationary pressure in key raw materials, necessitating cutting back of some promotions and taking effective price increases across both Parachute and Saffola edible oil portfolios.
The company expects to deliver a healthy profit growth on the back of various cost optimisation initiatives, and judicious advertising and promotion spends.
Marico said it maintains an optimistic outlook for the rest of the year, provided the Covid and the economic situation continues to improve.
"The company remains steadfast in its medium-term aspiration of delivering sustainable and profitable volume led growth, building on strong brand equity across core franchisees and progressively driving and scaling up new engines of growth," it said.
