Domestic Volumes Declined Marginally In Third Quarter, Marico Says
Marico Ltd. said its hair oil and coconut oil businesses dipped marginally in the quarter ended December, leading to a slight decline in volume growth of its India business.
Volume growth of the company’s domestic business fell marginally due to a decline in coconut oil, hair oils and other portfolios, the world’s largest maker of coconut oil said in an exchange filing. Its cooking oil vertical Saffola and foods portfolio, however, delivered healthy double-digit volume growth, the filing said.
The Mumbai-based conglomerate also said its international arm posted high single-digit constant currency growth aided by its Bangladesh arm, “while other geographies lacked fervour”.
The company’s flagship Parachute coconut oil and value-added hair oil verticals contributed around 63 percent to its domestic business in the year ended March 2019, while Saffola and foods division stood at 17 percent.
- Category growth across personal care remained under pressure.
- Firm continued to consolidate market share.
- Traditional channels stayed weak; continued to see soft demand environment.
- Growth in modern trade and e-commerce also slowed; channel partners continued to face liquidity challenges.
- Operating margins improved on the back of lower input costs.
Shares of the company declined 2.8 percent today, the most in over a month, compared to a 0.82 percent gain in the NSE Nifty.