Marico sees single-digit drop in Q3 revenue
NEW DELHI : Marico’s consolidated revenue in the December quarter declined in low single digits on a year-on-year basis, although operating profit saw a low double-digit growth, the company said in a quarterly update. The maker of Parachute oil also said it expects a low single-digit jump in domestic volumes for the December quarter, driven by improved demand for its flagship products, mainly in the cities.
Makers of fast-moving consumer goods are yet to announce their earnings for the December quarter. Mint reported on Thursday that products such as soaps, detergents and snacks saw tepid demand in rural India in the December quarter, triggering concerns over consumer goods sales volumes.
“During the quarter, the (fast-moving consumer goods, or FMCG) sector exhibited similar demand trends on a sequential basis, with urban markets staying steady and rural markets offering little to cheer," Marico said. “In addition, constraints on liquidity and profitability in the general trade channel remained an overhang for the sector, while alternate channels continued to fare well." Marico, however, said it was optimistic of a gradual growth in consumption trends in the next calendar year on improved macroeconomic factors and continued government spending.
Towards the end of the December quarter, Marico took steps to improve returns on investment across general trade distribution. “This included a primary stock correction for our channel partners.
As a result, Parachute Coconut Oil registered low single-digit volume growth with loose to branded conversions trending positively," Marico said in its update. “Saffola oils had an optically weak quarter owing to a high base and persistently cautious trade sentiment, even while offtakes
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