FMCG makers expect low to mid-single-digit volume growth in Q3; rural market continues to lag devdiscourse.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from devdiscourse.com Daily Mail and Mail on Sunday newspapers.
Towards the end of the December quarter, Marico initiated significant steps towards improving the ROI of its general trade channel partners while structurally re-igniting growth in the channel. This included a primary stock correction for its channel partners.
Marico s international business delivered mid-single digit constant currency growth amidst transient macro headwinds in the Bangladesh market, while the rest of the geographies held strong. With a degree of pricing corrections in key domestic portfolios yet to anniversarize and significant currency depreciation in select overseas geographies, consolidated revenue declined in low single digits on a year-on-year basis.
FMCG major Marico reported in its quarterly update that while urban markets remained steady, rural markets showed similar demand trends on a sequential basis with little improvement. The company highlighted constraints on liquidity and profitability in the general trade channel as a challenge for the sector.
Marico s June quarter performance and outlook drew varied opinions from brokerages post the earnings. While Motilal Oswal has dubbed the company s focus on diversification towards food and digital first brands to do the trick for the company, Nuvama revised its targets upwards. Kotak expects top line growth to remain muted.