NEW DELHI: FMCG major Marico on Monday announced that it has witnessed healthy momentum building across its key portfolios over the previous quarter and, hence, expects low double-digit bottomline growth in the fourth quarter of FY21.
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,” it added. General trade put up a strong show led by rural growth and e-commerce.
FMCG demand seen gathering pace
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 vaccine drives are in play.