Marico, in its quarterly update, said while it was hit by global commodity inflation, its India business remains firm.

“During the quarter, consumption trends remained subdued amidst weak rural sentiment and inflation in global commodities aggravating due to geopolitical tensions,” said the company in its quarterly update.  

According to Nielsen, FMCG volumes declined in the Jan-Feb’22 period on a year on-year basis. “Despite the challenging macro context, the India business stayed relatively firm, riding on focused execution and market share gains,” said Marico.

The company said that revenue growth in the quarter was in low-single digits, while volumes were marginally positive on an exceptionally high base (25 per cent), leading to a double-digit volume growth on a 2-year CAGR basis. 

Parachute coconut oil volumes were marginally lower year on-year, mainly due to a daunting base. Value added hair oils grew in low-single digits in value terms and continued to deliver as per medium term aspirations over a 2-year time frame. 

Personal care

The Saffola franchise grew in high teens in value terms, with foods growing healthily. Premium Personal Care posted broad-based double-digit growth. Digital-first brands, Beardo and Just Herbs, also performed in line with expectations. 

According to Marico’s quarterly update, the international business delivered double-digit constant currency growth on a strong base, with all markets faring well. 

Consolidated revenue growth in the quarter touched high single digits. Among key inputs, copra prices remained soft, however edible and crude oil prices spiked due to geopolitical tensions. In response, the company also took calibrated price increases in the value added hair oils and Saffola edible oil portfolios during the quarter. 

Consequently, gross margin is expected to be at similar levels as the same quarter last year. 

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