Marico sees flat volumes in third quarter on weaker consumption

Marico’s revenue growth was in double digits in the October-December quarter (Q3) but its volume growth is expected to be flat, it said in a quarterly update before announcing results.

The company said the fast-moving consumer goods sector witnessed slowing consumption pattern, mainly due to inflation impacting overall disposable incomes, while rising mobility caused some degree of pent-up demand for discretionary goods, services and out-of-home consumption.

In its India business, the company saw the same trends play as well. “Rural demand was also sluggish, albeit optical to an extent, given the high base,” Marico said in its update.

In hair oils, the company posted softer growth in value terms, but has delivered double-digit value growth on a two-year CAGR basis.

Marico’s Saffola range of products grew in high teens in value terms led by over 20 per cent growth in foods. Its foods business is on course to reach Rs 500 crore in revenue this year, it said. However, Saffola edible oils volume dropped largely owing to higher in-home consumption in the base and weak trade sentiment due to fluctuating input prices.

In premium personal care, the company saw broad-based double-digit growth.