FMCG major Marico on Monday said it has witnessed healthy momentum building across its key portfolios and expects low double-digit bottomline growth in the fourth quarter last fiscal after being impacted by the COVID-19 pandemic, as per a PTI report. Marico, in a quarterly update for the quarter ended March 31, 2021, said its India business delivered a very strong double-digit volume growth, albeit on a low but relatively stronger base when compared to key peers in the sector.
“Revenue growth in Q4 was even higher than volume growth due to pricing interventions in key portfolios to partially alleviate the significant input cost-push during the period,” it added.
The company, however, said it expects its operating margin to fall due to input cost pressures.
“As operating margin is likely to dip significantly owing to the severe input cost pressure, the company expects to deliver low double-digit bottomline growth in the quarter (Q4). 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,” the company said.
Marico said in the last quarter of the previous fiscal, the FMCG sector continued to exhibit improving demand trends as quarterly economic growth has moved into positive territory and the COVID-19 vaccination rollout 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. In the given context, the company also witnessed healthy momentum building across its key portfolios,” the company said.
As per Marico, general trade put up a strong show led by rural growth and e-commerce continued to gain salience.
“Modern Trade was affected by the high base on account of the pre-lockdown pantry loading in March last year but has been in recovery mode. CSD rebounded to post healthy growth,” it added.
Marico said its international business, too, posted strong double-digit constant currency growth on the back of recovery across markets.