Marico expects expects low double-digit bottomline growth in FY21 Q4
Fast-moving consumer goods business Marico expects to achieve low double-digit bottomline growth in the fourth quarter of the 2021 financial year but expects to see its operating margin decrease.
Marico experienced improving consumer demand and growth across its portfolios in the financial quarter just past, ET Bureau reported. The business also reported double-digit constant currency growth across its international markets. However, due to input cost pressures, Marico expects its operating margin to decline in the previous quarter which ended on March 31.
“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,” said Marico in a quarterly update accessed by the Press Trust of India.
“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],” said Marico in its update.
“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 [FY22].”
As India’s retail economy remains in an uncertain spot, especially with the return of local lockdowns, Marico said that it remains prepared to handle any further Covid-19 disruption. The business is continuing to see growth from its e-commerce sales channel, especially in rural areas, and, considering the prolonged effects of the pandemic, expects this trend to continue.
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