FMCG major Marico expects significant decline in revenue due to COVID-19 lockdown

Mumbai (Maharashtra) [India], April 9 (ANI): Fast-moving consumer goods major Marico expects a decline in revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) during the fourth quarter of FY20 due to national lockdown to contain the outbreak of COVID-19.
The production is currently suspended at the company's manufacturing units. The distribution network has also been significantly impacted due to the lack of manpower at each point.
"We are focusing on the movement of essential food and grocery items to the consumers subject to necessary approvals from local government authorities and taking all possible efforts to ensure uninterrupted supplies of essential products to our customers across channels (general trade, modern trade and e-commerce) within the existing constraints," it said in a quarterly update.
However, the company could register sales largely in the edible oils and foods portfolio. The continued healthy growth in the Saffola portfolio was further topped up by households stocking up on food and essential items in the early stages of the outbreak.
Overall, the India business posted a low single-digit volume decline in the quarter. With COVID-19 assuming the nature of a pandemic, the company said its international businesses were also affected.
With many of the territories experiencing partial or complete lockdown in March, the international business recorded a mid-single-digit decline on a constant currency basis.
"In these unprecedented times, the company will aim to serve its consumers to the extent possible by exhibiting agility and resilient execution until normalcy returns. At the same time, it has started an aggressive cost management exercise to mitigate the impact of reduced sales."
Marico is one of India's leading consumer products companies in the global beauty and wellness space. During 2018-19, it recorded a turnover of Rs 7,300 crore through its products sold in India and chosen markets in Asia and Africa. (ANI)