Jan 5, 2021
Marico’s India business has registered a “strong performance”, with double-digit volume growth benefiting from a faster-than-expected recovery in consumer sentiment and strong festive season sales in the third quarter ended 31 December.
The upcoming third-quarter earnings will help estimate consumer demand and normalization of supplies in the market in a year otherwise marked by covid-led disruptions.
While Marico’s foods and cooking oils business benefited from strong in-home consumption of foods, its personal care portfolio and more discretionary premium items suffered in the months of the lockdown.
However, the three months ended December has helped the company register year-on-year growth across its portfolio.
The company witnessed strong performance across its portfolio, with general trade continuing to grow healthily and rural markets staying ahead of urban. In the new age channels, while e-commerce continued the stellar run, modern trade after a soft first half, fared better in Q3. CSD (canteen store departments) continued to decline, albeit improving sequentially.
India’s business of Marico conveyed a strong performance with double-digit volume growth. Revenue growth was in tandem with volume growth.
Saffola edible oils continued its growth momentum, delivering double-digit volume growth. The foods portfolio, including oats, continued to witness exponential growth, backed by strong performance in both the base foods and the new product launches, it said in its update. However, it’s more discretionary categories such as male grooming and premium skincare brands saw a “steady revival”, with premium personal care portfolios witnessing improving trends sequentially, however, still posting a modest decline on a year-on-year basis.
In its second-quarter earnings, Marico reported an 11% growth in domestic volumes, with its cooking oil and packaged foods portfolio registering double-digit growth as a result of sustained in-home consumption of food.
In the third quarter, the company took price hikes due to inflationary pressure in key raw materials. This prompted the company to cut back on some promotions and take price increases across both Parachute and Saffola edible oil portfolios.
India’s FMCG industry will record a -1 to -3% decline in 2020, market researcher Nielsen said in its forecast for the sector in November last year.