Company will continue to drive sustained profitable volume-led growth over the medium term: Marico

In the India business, soft consumption trends and tight liquidity conditions led to a much subdued quarter for each of the core and some of the new categories, the company said.

Oct 01, 2019 10:10 IST India Infoline News Service

Marico Limited
The demand and consumer sentiments weakened progressively during the quarter, which manifested in slowing category growths. Further, liquidity challenges led to some correction in trade inventories and exerted pressure on channel partner’s investments and returns, Marico  said in the filing.

In the traditional channel, both rural and urban faced distress during the quarter. The alternate channels (Modern trade and E-commerce) however, stayed on course. Despite the uninspiring narrative around the economy prevailing, we hope for some recovery in overall sentiment in the second half on the back of good monsoons and government-led stimulus.

In the India business, soft consumption trends and tight liquidity conditions led to a much subdued quarter for each of the core and some of the new categories, the company said.

On the other hand, the International business maintained its relatively stable run with Bangladesh leading the way, while Vietnam witnessed some moderation in the Home and Personal Care segment.

Benign input costs in the India and Bangladesh business, as well as continued cost management measures, should lead to improved profitability during the quarter, despite a rise in the brand building spends and subdued topline. 

The Company will continue to drive sustained profitable volume-led growth over the medium term, through its focus on strengthening the franchise in the core categories and driving the new engines of growth towards gaining critical mass.

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