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Fast-moving consumer goods (FMCG) players witnessed a muted second quarter owing to weak monsoon and rising food prices.
Marico’s consolidated revenue dipped on a year-on-year basis. In a quarterly update, the company stated that the marginal revenue dip was due to price corrections in the domestic portfolio over the last 18 months.
The domestic volumes grew in low single digits on a year-on-year basis, with low single-digit volume growth in Parachute Coconut Oil and Saffola Edible Oils, and low single-digit value growth in Value Added Hair Oils.
“Instances of rising food prices and below-normal rainfall distribution in some regions seemed to impede the anticipated recovery in rural demand. Consumption trends, particularly in rural areas, are expected to improve in H2 owing to retail inflation levels staying within RBI’s target range, hike in MSPs, healthy sowing season, easing liquidity pressures and government spending,” the company stated in an exchange filing.
Global business
The International business registered a double-digit constant currency growth while the foods and premium personal care segments (including digital-first) remained on course to achieve the full-year aspirations, the company stated.
Godrej Consumer delivered mid-single-digit volume growth amid weak macros and adverse weather conditions during the quarter in the domestic market.
“Despite the tough operating environment, our organic business delivered steady performance with mid-single-digit volume growth. Overall, home care volumes grew in the mid-single digits while personal care grew in the low-single digits. The performance of Park Avenue and KamaSutra brands has improved sequentially and are on track to achieve full-year guidance,” the company stated in a stock exchange filing.
Godrej Consumer at a consolidated level is expected to deliver mid-single-digit volume growth, double-digit constant currency sales growth and low single-digit sales growth in INR terms.
“Godrej Africa, USA, and Middle East (GAUM) continued its consistent performance with constant currency sales growth in mid-teens. However, in INR terms, adverse currency translation impact will result in mid-single digit sales decline,” the company stated.
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