Marico share price: Company cruises on big booster shot from modern trade, e-commerce to general trade
Maricos India business delivered a strong performance with double-digit volume growth. Marico Revenue growth was in tandem with volume growth. Parachute Coconut Oil delivered ahead of its medium-term aspiration. Saffola Edible Oils continued its growth momentum, delivering double-digit volume growth. Value Added Hair Oils also exhibited strength with a broad based sharp recovery across sub segments leading to overall double-digit growth for the category. Maricos Foods portfolio continued to witness exponential growth in line with the near-term aspiration, backed by strong performance in both the base foods and the new product launches.
Marico share price: The quarter was characterized by a faster than expected recovery in consumer sentiment in India, aided by the festival season and a declining COVID-19 graph. Marico witnessed strong performance across its portfolio with General Trade continuing to grow healthily and rural markets staying ahead of urban. In the new age channels, while E-Commerce continued the stellar run, Modern Trade after a soft first half, fared better in Q3. CSD continued to decline, albeit improving sequentially.
Marico's India business delivered a strong performance with double-digit volume growth. Marico Revenue growth was in tandem with volume growth. Parachute Coconut Oil delivered ahead of its medium-term aspiration. Saffola Edible Oils continued its growth momentum, delivering double-digit volume growth. Value Added Hair Oils also exhibited strength with a broad based sharp recovery across sub segments leading to overall double-digit growth for the category. Marico's Foods portfolio continued to witness exponential growth in line with the near-term aspiration, backed by strong performance in both the base foods and the new product launches. There was a steady revival in discretionary categories with the Premium Personal Care portfolios witnessing improving trends sequentially, however, still posting a modest decline on a year on year basis.
Marico's International business had a resilient quarter with high-single digit constant currency growth, led by double-digit constant currency growth in Bangladesh and recovery in few other markets.
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Marico's quarter was also characterized by inflationary pressure in key raw materials necessitating cutting back of some promotions and taking effective price increases across both Parachute and Saffola edible oil portfolios. The Company expects to deliver a healthy profit growth on the back of various cost optimization initiatives and judicious A&P spends.
Marico maintains an optimistic outlook for the rest of the year provided the COVID and the economic situation continues to improve. The Company remains steadfast in its medium-term aspiration of delivering sustainable and profitable volume led growth, building on strong brand equity across core franchisees and progressively driving and scaling up new engines of growth.
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