India business of Marico Ltd recovered in May and June after a tough April. The company gained market share in more than 90 percent of the portfolio with Saffola Oils and Foods category leading the way.
Marico touches the lives of one out of every three Indians through its portfolio of brands such as Parachute, Parachute Advansed, Saffola, Saffola FITTIFY Gourmet, Coco Soul, Hair & Care, Nihar Naturals, Livon, Set Wet, Set Wet Studio X, Veggie Clean, Kaya Youth O2, Travel Protect, House Protect, Mediker, Revive and Beardo.
Among its products, Saffola Edible Oils continued its growth journey, posted 16 percent volume growth, building on strong brand credentials, ramped-up presence and increased in-home consumption.
Parachute, their flagship product, remained on a firm footing as lockdown restrictions eased in May and June.
However, volumes declined by 11 percent on a year-on-year basis on a high base and due to heavily skewed sales in the first quarter last year.
The volume market share of the Coconut Oil franchise which includes Nihar Naturals and Oil of Malabar strengthened by about 180bps to 62 percent.
Nihar Shanti Amla Badam led the recovery in May and June, while among the newer introductions, Parachute Advansed Aloe Vera Enriched Coconut Hair Oil witnessed encouraging trends in June.
The Premium Personal Care recorded sharp declines given the significant fall in discretionary category sales.
On the other hand, Saffola refined edible oils grew by 16 percent in volume terms topped up by the in-home consumption tailwind.
The Foods franchise posted value growth of 30 percent in Q1FY21. Saffola Masala Oats continued to fortify its stronghold in the flavoured oats segment as its value market share expanded to 88 percent.
The company had forayed into the Hygiene segment with the launch of Mediker Hand Sanitizer and Veggie Clean in April.
Both have witnessed healthy traction and the company will continue to invest for growth in these franchises, Marico said.
In the current quarter, the hygiene portfolio contributed to more than 1.5 percent of the India business topline.
The domestic business of Marico Ltd was severely impacted in April due to supply-chain disruptions following the extension of the national lockdown but was able to scale up sequentially in May and June as restrictions were relatively eased, the company said in a press release today after announcement of results for Q1 (April-June) FY21.
FMCG major Marico reported a robust 23.2 percent rise in consolidated net profit for the quarter ended June 2020 at Rs 388 crore as against Rs 315 crore in the year-ago period. Net profit beat CNBC-TV18 analysts’ poll estimates of Rs 293 crore.
Revenue from operations during the quarter declined 11.1 percent to Rs 1,925 crore from Rs 2,166 crore. CNBC-TV18 analysts’ poll had estimated a revenue of Rs 1,868 crore.
Marico’s India business recorded a turnover of Rs 1,480 crore, down 15 percent on a year-on-year basis.
The operating margin improved to 25.7 percent in Q1FY21 as against 22.6 percent in Q1FY20.
Saugata Gupta, MD and CEO, commented, “After a significantly challenging April, the business has reached near-normal levels and expects to deliver growth in the rest of the year. Market share gains in more than 90 percent of the portfolio has also been reassuring. We will continue to invest for growth in our core portfolio of trusted leader brands as well as adapt to evolving consumer needs in the areas of health, immunity and hygiene.”