The company is seeing “improving demand trends”, as the second wave appears to be receding and the vaccination drive is progressing steadily,” said Marico in its quarterly update for Q1 of FY2021-22.
“The India business delivered 30 per cent plus revenue growth, backed by a robust double-digit volume growth,” it said.
Over the International business, Marico said, it has posted “constant currency growth in the low 20’s” on the back of sustained momentum in Bangladesh and broad-based recovery across other markets.
During the quarter, input costs have started easing after peaking at the start of this quarter.
“However, gross margins will remain under pressure in this quarter due to consumption of higher-cost inventory and will improve from Q2 onwards,” it said.
In the domestic market, Marico’s Parachute Coconut Oil delivered ahead of “medium-term expectations” and Saffola Edible Oils posted “low double-digit volume growth”, despite a high base, it added.
“Value-Added Hair Oils recovered smartly across the entire franchise, albeit on a low base, which was due to billing constraints during most of April last year. The Foods portfolio revenue more than doubled year-on-year with the Oats franchise continuing its strong run and recent launches scaling up well in line with medium-term expectations,” it said.
Its premium personal care, which constitutes less than 5 per cent of domestic revenues also recovered “sharply over last year, but ended below pre-COVID levels,” it added.
Over the apprehensions of a third wave, Marico said it is “adequately prepared to tackle” any disruptions in the business environment resulting from the same.
“The Company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and new engines of growth reaching critical mass,” it said.
