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FMCG majors, Marico and Godrej Consumer Products Ltd (GCPL) expect double-digit growth in the second quarter of the 2022 fiscal year.
In a quarterly update filing, Marico said that they witnessed healthy consumer sentiment across categories. Revenue growth in the quarter was in the low twenties, with volume growth close to double-digits on a 2-year compound annual growth rate (CAGR) basis.
Parachute oil delivered with their medium-term aspirations. Saffola franchise, Saffola Edible Oils had a muted quarter, largely due to volatility in edible oil prices leading to trade destocking and partly owing to lower in-home consumption.
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Foods, on the other hand, continued to grow smartly and remained on course to clock ₹500 crore in revenues this year. Premium personal care portfolios grew handsomely, albeit on a low base. The digital-first brands, Beardo and Just Herbs, performed in line with expectations.
International business
The international business delivered double-digit constant currency growth as Marico witnessed positive trends in all markets, except Vietnam. “Vietnam, where a large part of our portfolio is of a discretionary nature, was in the grip of a severe Covid-19 surge and stringent lockdown restrictions,” the Marico stock exchange filing said.
GCPL in their stock exchange filing stated that they expect close to a double-digit sales growth, driven largely by volume growth and calibrated price increases. They also expect their 2-year CAGR to be in the double digits. GCPL witnessed broad-based sales growth in our Home Care and Personal Care categories.
A marginal decline is expected in the Indonesian Market, for GCPL. This is impacted by challenging macroeconomic variables, a gradual recovery in the Air Fresheners category, and high competitive intensity in the Wet Wipes category.
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“In Godrej Africa, USA and the Middle East, growth momentum continued across most of our key countries of operations. We expect to deliver constant currency sales growth in the mid-teens. Here too, we expect our 2-year CAGR to be in the double digits,” said the GCPL stock exchange filing.
“At a consolidated level, we continue to leverage our category and geographic portfolio well and expect to deliver high single-digit sales growth with another quarter of double-digit 2- year CAGR,” GCPL added.