The Parachute brand owner had seen signs of revival until early March, but disruptions caused by the pandemic in the latter half of the month more than offset the same, resulting in a decline in volume growth in the domestic business.
During the impact period, Marico largely saw sales in the edible oils and foods portfolio. Its Saffola portfolio saw healthy growth as households stocked up on food and essential items in the early stages of the outbreak.
"India business posted a low single-digit volume decline in the quarter, with very skewed high growth in the Saffola portfolio," the company said in a press release. Overall growth in the quarter was in low single digits, as primary movement of goods was relatively more affected during the lockdown period. As a result, value growth for the business continued to trail volume growth. The company has currently suspended production at some of its manufacturing units, and will resume operations after receiving necessary approvals from the government. Marico's international business was equally affected, registering a mid-single digit fall in revenue on a constant currency basis.
"The company will continue to drive sustained profitable volume-led growth over the medium term, through its focus on strengthening the franchise in the core categories and driving new engines of growth towards gaining critical mass," Marico said. At 0945 IST, shares of the company were up 2.3% at 296 rupees on the National Stock Exchange.
