Marico said its India business delivered double-digit volume growth in Q4FY21
Parachute Coconut Oil led from the front, posting stellar volume growth
FMCG major Marico Ltd on Monday released its overall summary of the operating performance and demand trends for the quarter ended 31 March 2021.
The FMCG major said that its India business delivered double-digit volume growth. Revenue growth in Q4 was higher than volume growth due to pricing interventions in key portfolios, Marico said in a regulatory filing.
In its Q4FY21 update, it alsoadded that the company is "adequately prepared to tackle disruptions in business environment on account of rise in Covid-19 cases in India."
"In the last quarter of the fiscal year, the sector continued to exhibit improving demand trends as quarterly economic growth has moved into positive territory and the COVID-19 vaccination rollout has gathered pace. However, as we keep a watchful eye on the evolving situation post the current COVID surge, the Company is adequately prepared to tackle any disruptions in the business environment on account of the same," Marico said in a statement.
As for the FMCG products, Parachute Coconut Oil led from the front, posting stellar volume growth, it said. Saffola Edible Oils grew in double digits for the sixth quarter in a row, despite a very high base. Value-Added Hair Oils firmly moved along a sustainably recovering trajectory with high double-digit volume growth in the quarter.
The Foods portfolio more than doubled in size with a strong performance in the Oats franchise and aggressive innovations through this year. While select franchises of Premium Personal Care continued to trend positively, the overall portfolio was still muted. The International business, too, posted strong double-digit constant currency growth on the back of recovery across markets.
Marico also said that it maintains target of delivering sustainable, profitable volume-led growth over medium term.
The company also said that its international business, too, posted strong double-digit constant currency growth on the back of recovery across markets.
It also added that the company expects to deliver low double-digit bottomline growth in the quarter as operating margin is likely to dip significantly owing to the severe input cost pressure.
"While the input cost environment has turned challenging in the short term, the Company expects these trends to be transient and correct from Q2 next year. Notwithstanding the quarterly variations in volume growth/margins over the last 15 months, the Company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, on the back of the strengthening brand equity of its core franchises and progressively driving and scaling up new engines of growth," it further added.
Marico's shares on BSE closed 1.76% lower at ₹400.10 apiece on Monday. The company shares rose sharply in late trade, up 1.5%, after update on Q4 results.