NEW DELHI: FMCG major Marico has posted strong performance with double-digit volume growth in its India business in Q3 2021. In an investor update on BSE, the company has shared an update on the overall summary of its operating performance and demand trends witnessed in the quarter ended 31 December 2020.

The quarter was characterised by a faster than expected recovery in consumer sentiment in India, aided by the festival season and a declining Covid2019 graph. The company registered strong performance across its portfolio with general trade continuing to grow healthily and rural markets staying ahead of urban. In the new age channels, while e-commerce continued its stellar run, modern trade fared better in Q3 after a soft first half. CSD continued to decline, albeit improving sequentially.

Revenue growth was in tandem with volume growth. Parachute Coconut Oil delivered ahead of its medium-term aspiration. Saffola Edible Oils continued its growth momentum, delivering double-digit volume growth. Value added hair oils also exhibited strength with a broad based sharp recovery across sub-segments leading to overall double-digit growth for the category. The foods portfolio continued to witness exponential growth in line with the near-term aspiration, backed by strong performance in both the base foods and the new product launches. There was a steady revival in discretionary categories with the premium personal care portfolios witnessing improving trends sequentially, however, still posting a modest decline on a year-on-year basis.

The quarter was also characterised by inflationary pressure in key raw materials necessitating cutting back of some promotions and taking effective price increases across both Parachute and Saffola edible oil portfolios. The company expects to deliver a healthy profit growth on the back of various cost optimisation initiatives and judicious A&P spends.

International business had a resilient quarter with high-single digit constant currency growth, led by double-digit constant currency growth in Bangladesh and recovery in few other markets.

Marico maintains an optimistic outlook for the rest of the year provided the Covid2019 and the economic situation continues to improve. The company remains steadfast in its medium-term aspiration of delivering sustainable and profitable volume led growth, building on strong brand equity across core franchisees and progressively driving and scaling up new engines of growth.

In Q2 2021, the company increased its advertising spends, taking it back to its pre-Covid2019 levels. While its food segment, Saffola, and Parachute performed well, the brand also launched several new products during this time.