You are here: Home » Companies » News
Business Standard

Marico logs volume growth, notices revival in consumer demand in Sept qtr

FMCG major Marico on Monday said it has witnessed a partial revival in the consumer sentiment in the second quarter of the current fiscal after being impacted by the Covid-19 pandemic

Marico | FMCG | Coronavirus

Press Trust of India  |  NewDelhi 

FMCG, Marico, Parachute

major on Monday said it has witnessed a partial revival in the consumer sentimentin the second quarter of the current fiscal after being impactedby the COVID-19 pandemic.

said although there were intermittent supply chain disruptions across locations due to localised lockdowns, the distribution network has rebounded back to near pre-COVID levels.

"The quarter was characterised by a partial revival of consumer sentiment, which also reflected in the company's performance across portfolio and channels," said.

"Rural continued to perform better than urban aided by government's focused relief packages, relatively lower impact of the pandemic, the resilience of the agricultural sector in a declining GDP context and the consumption shift due to reverse migration of labour," it said in an update on the operating performance and demand trends in the September 2020 quarter.

Marico said its India business witnessed signs of revival in consumer demand in the core categories contributing more than 90 per cent of the business and registered robust volume growth in the quarter.

"Foods portfolio, riding the tailwind and on the back of innovations, continued its momentum and registered exponential growth in line with the company's near-term expectations," the company said.

Marico said duringthe secondquarter of the current fiscal, its international business clocked mid-single digit constant currency growth.

"Bangladesh continued to lead from the front with double digit growth while other markets have shown improvement sequentially," it added.

During the quarter, the company said it upped the investments behind brand building and advertisement spends were back to pre-COVID levels.

On outlook, Marico said although the key raw materials have seen an inflationary trend towards the end of the quarter, it expects to deliver healthy earnings growth on the back of robust volume growth and a host of cost saving initiatives.

As lockdown restrictions are progressively easing, the company maintains a positive outlook for the rest of the year provided the ongoing health crisis does not escalate further and economic activity revives steadily.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, October 05 2020. 16:57 IST