Fast-moving consumer goods major Marico said on Tuesday that demand and consumer sentiments for its products weakened progressively during the quarter of July to September quarter, which manifested in slowing category growths.
Further, liquidity challenges led to some correction in trade inventories and exerted pressure on the channel partner investments and returns.
In the traditional channel, both rural and urban faced distress during the quarter. The alternate channels -- modern trade and e-commerce -- however, stayed on course.
"Despite the uninspiring narrative around the economy prevailing, we hope for some recovery in overall sentiment in the second half on the back of good monsoons and government-led stimulus," it said in a statement.
In the India business, soft consumption trends and tight liquidity conditions led to a much subdued quarter for each of the core and some of the new categories.
On the other hand, the international business maintained its relatively stable run with Bangladesh leading the way while Vietnam witnessed some moderation in the home and personal care segment.
Benign input costs in the India and Bangladesh business as well as continued cost management measures should lead to improved profitability during the quarter, said Marico, despite a rise in the brand building spends and subdued topline.
"The company will continue to drive sustained profitable volume-led growth over the medium term, through its focus on strengthening the franchise in the core categories and driving the new engines of growth towards gaining critical mass," it said.
During 2018-19, Marico recorded a turnover of Rs 7,300 crore through its products sold in India and select markets in Asia and Africa.
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