In Q3FY21, Revenue from Operations grew by 16% YoY to INR 2,122 crores (USD 287 million) on the back of a strong domestic volume growth of 15% and a constant currency growth of 8% in the international business. Amidst steadily improving consumer confidence and the receding impact of the pandemic, the India business witnessed robust demand trends across more than 95% of its portfolio.
During the quarter, as key raw materials saw inflationary trends, the company increased effective consumer pricing in select portfolios, while continuing to absorb the cost hit to a certain extent.
Meticulously driven cost saving initiatives and rationalized advertising in discretionary categories enabled an EBITDA margin delivery of 19.5%. Overall, EBITDA and PAT grew by 11% and 13%, respectively, on a year-on-year basis.
General Trade led the growth with rural growth outpacing urban markets. Among the alternate channels, e-commerce delivered augmented growth, while Modern Trade fared better sequentially, delivering flattish growth year-on-year. CSD witnessed a modest decline year-on-year, though recovering sequentially.
Saffola Honey, launched earlier this year, delivering on its promised “100% pure” claim, tracked well-ahead of expectations and exited with a close to double digit market share in key Modern Trade chains and crossed 20% market share in e-commerce.
Broadening its play in the healthy foods category, during the quarter, the company forayed into the plant-based protein category with the launch of Saffola Mealmaker Soya Chunks. As consumption patterns normalize, the company will strive to sustain the current momentum and clock a double-digit volume growth in the India business in the coming few quarters, provided
there is no second surge of COVID-19 cases and economic recovery continues. Over the medium term, the Company shall endeavor to deliver an 8-10% volume growth, growing the core franchises and scaling up the Foods business. With focus on gaining and defending market share, the company expects to maintain threshold operating margin of 19% plus over the medium term.
Other updates:
• Packaging Team received 8 ‘India Star Packaging Design Excellence’ Awards 2020
• The ‘Parachute Advansed Champi Beats’ campaign won Gold for ‘Best Use of Digital’ at Fulcrum Awards
2020
• Marico ranked 6th among ‘India’s Most Sustainable Companies’ with A+ rating by Businessworld and
Sustain Labs Paris.
• Women Leadership Forum of Asia recognised Marico with ‘Best D & I Award for Inclusion of Millennials’
• Strong Commitment Certificate in ‘Sectoral Value Chain of Copra – Dry Coconut’ for 2020 was awarded
by CII Jubilant Bhartia Food and Agriculture Centre of Excellence (CII-FACE) as part of Food Future
Foundation (FFF)
• Marico Bangladesh ranked #3 Employer of Choice in Bangladesh across all FMCG companies and ranked
#8 amongst all sectors (according to the 2020 campus Track survey conducted by Nielsen Bangladesh)
