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India's Marico Delivers 'Resilient' Performance In First Quarter

Indian conglomerate Marico Limited delivered a "fairly resilient performance" in the first quarter of its financial year, its chief executive has said, despite the impact of COVID-19 on its business.

The maker of Parachute coconut oil posted revenue of INR 1,925 crore (€218 million) in the first quarter of the year, which was down 11% due to supply chain disruptions in April, as a result of the national lockdown.

However, the business said that it was able to 'scale up sequentially' during May and June with the easing of restrictions.

Operating margin rose by 300 basis points in the quarter, with the business gaining market share in more than 90% of its portfolio on an MAT basis, it said.

In India, its business reported a turnover of INR 1,480 crore, with its Parachute business seeing volumes decline by 9%, however its Foods business, helmed by the Saffola brand, saw sales soar.

In Bangladesh, sales were up 10% on a constant currency basis, while South East Asia was down 17%, Vietnam was down 14%, MENA fell by 27% and South Africa dropped by 25%.

Growth Expectations

"After a significantly challenging April, the business has reached near- normal levels and expects to deliver growth in the rest of the year," commented Saugata Gupta, Marico chief executive.

"Market share gains in more than 90% of the portfolio has also been reassuring. We will continue to invest for growth in our core portfolio of trusted leader brands as well as adapt to evolving consumer needs in the areas of health, immunity and hygiene, while focusing on agility, excellence in execution, aggressive cost management and financial discipline.”

Looking ahead, the company said that it will 'strive to sustain the momentum' seen in recent months, and deliver sales growth in the remainder of the year, provided the COVID-19 crisis doesn't worsen in the months to come.

© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine

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