Consolidated revenue is said to have dropped in low single-digits year-on-year due to significant currency depreciation in select overseas geographies.
The pricing corrections in key domestic portfolios, which is yet to anniversarize, may also have led to a decline in revenues.
In the second quarter, revenue from operations declined marginally to Rs 2,476 crore, while profit grew 17% to Rs 353 crore.
Towards the end of the December quarter, Marico initiated significant steps towards improving the ROI of its general trade channel partners while structurally re-igniting growth in the channel. This included a primary stock correction for its channel partners.
As a result, Parachute Coconut Oil registered low single-digit volume growth with loose-to-branded conversions trending positively.
Meanwhile, Saffola Oils had an optically weak quarter owing to a high base and persistently cautious trade sentiment, even while offtakes remained healthy.Value-added hair oils posted low single-digit value growth amid sluggishness in the bottom of the pyramid segments of the
portfolio.
Marico said it stayed on course in the diversification journey as foods and premium personal care scaled up well in line with aspirations.
The international business has delivered mid-single digit constant currency growth amid transient macro headwinds in the Bangladesh market, while the rest of the geographies held strong.
Among key inputs, copra and edible oil prices remained at lower levels and crude derivatives also exhibited some downward bias, thereby leading to robust gross margin expansion on a year-on-year basis.
Advertising spends were ramped up during the third quarter in line with the company’s strategic intent to continually strengthen the long-term equity of both the core and new franchises.
Consequently, the company said it expects low double-digit operating profit growth on the back of a healthy expansion in operating margin, staying on track to deliver on the margin guidance for the full year.
During the quarter, the FMCG sector exhibited similar demand trends on a sequential basis, with urban markets staying steady and rural markets offering little to cheer.
“We remain optimistic of a gradual uptick in consumption trends over the course of the next calendar year,” Marico said.
On Friday, the Marico shares declined 1.44% to settle at Rs 545.80 on NSE.
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