Sentiment has turned weak in Q3: Marico

Mumbai: Marico, the maker of Saffola and Parachute oil, said the quarter ended December belied expectations of the beginning of a revival in sentiment which were built on the back of good monsoons and announcement of various government measures.

“The traditional channel stayed weak, as channel partners continued to face liquidity challenges amidst a soft demand environment. Growth in modern trade and ecommerce also slowed down, partly due to specific price management measures taken in these channels to counter inter-channel conflict,” it said in its update on the BSE.

While its portfolio of Saffola oils and foods delivered healthy double-digit volume growth, coconut and other hair oils declined, which in turn led to a marginal decline in its overall India business.

Also, EBITDA margins are expected to improve year-on-year given benign input costs, which should translate to reasonable growth in the bottomline, it said in the update. The company, however, expects some green shoots of recovery in Q4.