ICICI Direct: Marico’s Limited Portfolio Of Covid-19 Beneficiaries
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ICICI Direct Report
Marico Ltd. reported an 11% decline in revenue with domestic business degrowing 15%.
Manufacturing and supply chain operations only started in end April for Parachute and value added hair oil (VAHO) resulting in substantial loss of sales for the month. Domestic volumes fell 14% with Parachute, VAHO down 11%, 30%, respectively.
Saffola edible oil grew by 16% benefited by increase in-home consumption. The foods business, which contributes approximately 3% of revenues, saw 30% growth with Saffola Masala oats sales growing 41%.
On the other hand, personal care category (hair serum, male grooming and Premium Skin care) was significantly impacted by discretionary nature of category.
Within international business, except Bangladesh that saw 10% growth, all other major regions saw double digit sales decline. Operating margins expanded 300 basis points largely due to the similar cut in advertising and promotion spends. profit after tax (before exceptional income) grew 2.8% to Rs 324 crore.
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