“While companies have implemented price hikes across all FMCG categories to cope with pushing costs, persistent inflation has continued to hurt the wallets of consumers in rural and urban areas. As a result , FMCG volumes declined during the January-February 22 period on a year-over-year basis,” the company said.
Marico’s certificate slipped to a low of Rs 518.95 from Rs 543.90 at the previous close on BSE.
The saffola and parachute oil maker said that despite the challenging macro environment, its business in India remained relatively firm, underpinned by targeted execution and market share gains and revenue growth in the quarter was single-digit, while volumes were slightly positive on an exceptionally high 25 percent basis.
Parachute Coconut Oil volumes were slightly lower year-over-year, primarily due to a high basis, while Value-Added Hair Oils were up single digits in value , the company said.
Among major inputs, copra prices remained weak, however, edible oil and crude oil prices soared due to geopolitical tensions. The company had taken calibrated price increases in the Saffola value-added hair oils and edible oils portfolios during the quarter. As a result, gross margin is expected to be at similar levels to the same quarter last year and the company expects marginal profit growth in the quarter.
Amid mounting inflationary pressures, India’s Fast Moving Consumer Goods (FMCG) market growth has declined steadily every quarter for a year, indicating subdued demand for personal care, home and hygiene products which boosted the sector last year.