Marico witnesses faster recovery in consumer sentiment, strong Q3

FMCG major Marico said it has witnessed faster than expected recovery in consumer sentiment in India and a strong performance in the third quarter this fiscal

FMCG major Marico on Monday said it has witnessed faster than expected recovery in consumer sentiment in India and a strong performance in the third quarter this fiscal, after being impacted by COVID-19 pandemic.

The company said it has observed strong performance across its portfolio with general trade continuing to grow firmly and rural markets staying ahead of urban.

"The quarter was characterised by a faster than expected recovery in consumer sentiment in India, aided by the festival season and a declining COVID-19 graph.

"India business delivered a strong performance with double-digit volume growth. Revenue growth was in tandem with volume growth. Parachute Coconut Oil delivered ahead of its medium-term aspiration. Saffola Edible Oils continued its growth momentum, delivering double-digit volume growth," Marico said in its quarterly update for December 2020.

The value-added hair oils also exhibited strength with a broad-based sharp recovery across sub-segments, leading to overall double-digit growth for the category. The food 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, the company said.

It noted that there was a steady revival in discretionary categories with the premium personal care portfolios witnessing improving trends sequentially, however, still posting a modest decline on a year-on-year basis.

Marico said 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 a 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 said.

Marico maintains an optimistic outlook for the rest of the year provided the COVID and economic situation continues to improve.

The company said it 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.