2 min read.Updated: 06 Jul 2021, 11:09 AM ISTLivemint
The impact of the second wave was significantly lower compared to the first wave as most companies were more prepared to deal with any supply-related issues; this helped companies move goods to market and ensure availability during the more recent round of restrictions
NEW DELHI: Packaged consumer goods companies Marico Ltd and Godrej Consumer Products Ltd, reported their quarterly update ahead of their June quarter earnings. Marico said demand for its core brands such as Saffola edible oils, and Parachute hair oils remained intact, implying that the impact of the second wave was significantly lower on its business compared to the first wave.
Most companies were more prepared to deal with any supply-related issues; this helped companies move goods to market and ensure availability during the more recent round of restrictions as cases surged in India. Meanwhile, essential stores were largely open during the April-May lockdowns with curbs on store timings.
Marico said it witnessed “healthy momentum" in demand in March sustained for the first three weeks of April, until the second covid surge.
“However, the impact on business was lesser than the first wave witnessed last year, as supply chains were evolved enough to cope with localized and staggered lockdowns and retail stores were also allowed to operate for a limited number of hours during the day," it said.
Overall demand has been trending better since early June, it added.
“The India business delivered 30% plus revenue growth, backed by a robust double-digit volume growth," it said in an update on 2 July.
Barring premium personal care that is still below pre-covid levels, most businesses reported growth. Saffola edible oils posted low double-digit volume growth, despite a high base. 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, the company said.
Cinthol soap maker Godrej Consumer Products Ltd, on the other hand, said it expects to deliver sales growth in “high teens". This, the company said, in a filing on Monday, will be driven by strong volume growth and calibrated price increases.
Several companies witnessed an inflationary March quarter prompting them to raise prices across their portfolio of products. Some even carried forward price hikes well into the June quarter.
“We expect our 2-year CAGR to be in the double digits. We witnessed strong double-digit sales growth in our home care and personal care categories. Home care was led by a strong growth in household insecticides whereas personal care was led by personal wash and hygiene," the company said.
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