Fast-Moving Consumer Goods (FMCG) major Marico Ltd on Monday said that the company has witnessed faster-than-expected recovery in consumer sentiment in India and a strong festive season sales in the third quarter ended 31 December, after being impacted by the coronavirus pandemic. According to a PTI report, the company stated that it has observed strong performance across its portfolio with general trade continuing to grow firmly and rural markets staying ahead of urban.

“India business delivered a strong performance with double-digit volume growth. 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,” Marico said in its quarterly update for December 2020.

The 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. While Marico’s foods and cooking oils business benefited from strong in-home consumption of foods, its personal care portfolio and more discretionary premium items suffered in the months of the lockdown. “The food portfolio continued to witness exponential growth in line with the near-term aspiration, backed by strong

Parachute Coconut Oil delivered ahead of its medium-term aspiration

performance in both the base foods and the new product launches,” the company said.

“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. The company 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 (canteen store departments) continued to decline, albeit improving sequentially,” the company said.

Marico said the 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 a few other markets. “The quarter was also characterised 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 said.

Marico maintains an optimistic outlook for the rest of the year provided the COVID and economic situation continues to improve. The company said it 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.