Marico reports improving demand in Q2 with growth in "low twenties"

By

Isabelle Crossley

Published
Oct 6, 2021

Fast moving consumer goods business Marico has reported improved consumer demand in the second quarter of the 2022 financial year with growth in the “low twenties”, thanks to a lull in the pandemic. 

On October 5, Marico announced that its volume growth for the second quarter of the financial year was close to double-digits on a two-year compound annual growth rate basis in a regulatory filing, ET Bureau reported. Witnessing a healthy consumer sentiment across its product categories in the Indian market, Marico expects to deliver sustainable growth over the medium term by strengthening its brand equity.
 
The business saw its hair oil brand Parachute perform in line with its medium-term targets and also saw its value-added hair oils experience double-digit volume growth. Digital first personal care brands Beardo and Just Herbs also performed in line with expectations, according to Marico. 

“During the quarter, the sector witnessed improving demand trends as mobility levels increased with reducing Covid-19 infections and accelerated vaccination drives,” said Marico in a statement, the Press Trust of India reported. “Discretionary categories and out-of-home consumption also visibly picked up.” 
 
“Operating margin is also expected to contract on a year on year basis given the arithmetic effect of significant pricing growth in the topline,” the brand said about its outlook. “As a result, the company expects modest bottom-line growth in the quarter.”