Marico expects muted growth for third quarter
Fast-moving consumer goods brand Marico Limited is expecting soft growth during the third quarter of the current fiscal, on the back of poor sales from its personal care segment.
During the October-December period, Marico’s overall Indian business reported a marginal dip in volume growth, as coconut oil, hair oils, and other portfolios witnessed a decline.
The company had reported a net profit to Rs 253 crore ($35.8 million) for the second quarter, ended September 30, 2019, with revenue dropping by 8 percent to Rs 1,829 crore.
“Overall consumption trends during the quarter belied expectations of the beginning of a revival in sentiment which was built on the back of good monsoons and announcement of various government measures,” Marico said in an exchange filing.
“The traditional channel stayed weak, as channel partners continued to face liquidity challenges amidst a soft demand environment. Growth in modern trade and e-commerce also slowed down, partly due to specific price management measures taken in these channels to counter inter-channel conflict,” the company added.
For the financial year 2018-19, Marico had posted a net profit of Rs 1,135 crore with revenue of Rs 7,334 crore.
Marico is one of India's leading consumer products companies, with a strong presence in the beauty and personal care segments.
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