FMCG major Marico reported an in-line net profit for September quarter at Rs 185.04 crore. The company’s revenue was higher by around 7 percent at Rs 1,536.3 crore against Rs 1.439.5 year on year.
The volumes were in-line with estimates at 7-8 percent but a marginal miss on realisations.
Throwing more light on the numbers and outlook going forward, Saugata Gupta, MD & CEO, Marico said they are confident of delivering 8-10 percent volume growth in second half (H2).
He said there are still some issues with regards to wholesale and army canteen stores but some of them will get corrected in H2.
In case of channel, there could be a permanent reset, which would involve direct distribution in rural, he said.
Ad spends were down in Q2 but they are expected to be around 11-12 percent of sales going forward on back of pickup in rural consumption as GST issues settle down. In fact, ad spends will increase over the next 2-3 years, said Gupta.
Talking about the rural demand, he said some green shoots are visible and worst of demonetisation seems to be behind us, said Gupta, adding that monsoons have been good and increase in MSPs have been good.
With regards to market share, he said organised players are consolidating market share post GST.
The company would continue to look at new launches across all segments, he said, adding that they are excited about prospects for Beardo.
Talking about exports, he said Bangladesh is going well and worst is over for West Asia and North America although South Asia struggled a bit.
Beardo is men’s grooming brand that sells beard oils, beard waxes, soaps etc.
For the entire interview, watch video
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