Marico is well oiled

Marico posted an update on the Covid situation and its impact on the company. It stated:

i: The last week of March’20 and first fortnight of April’20 witnessed significant disruptions in the business and operations of the Company.

Ii: It resumed operations in its Edible oils and Foods businesses in early April,

iii: Hair Oils & Personal Care operations resumed in late April to early May.

iv: With the situation gradually improving, the month of May saw a near-normal throughput in all the categories except the Premium Personal Care business.

v: Overall business has experienced gradual improvement from the mid of April to till date and is currently clocking more than 90% of the FY20 average monthly sales.

vi: Saffola Edible Oils and Foods business have continued their healthy run with a robust growth, which has been further aided by in-home cooking and consumption trend during the pandemic.

vii: Parachute coconut oil has also shown resilience and is clocking FY20 average sales.

viii: Due to lack of permission to bill in the initial part of lockdown, Value Added Hair Oils started witnessing a gradual pickup towards end of April. However, the Premium Personal Care categories (premium hair care and male grooming) continue to move slowly.

ix: In Bangladesh, although the operations have been affected, the business has been fairly resilient, while in Vietnam things are slowly getting back to normal though business in Middle East, Africa and Egypt continues to be affected.

x: International business is currently clocking more than 90% of the FY20 monthly average top line.

xi: There has been no major impact on its liquidity position and hence is in a comfortable position to meet its commitment and the company continues to drive profitable operations and enjoys a comfortable net cash surplus situation.

The market seems to be relatively happy with this update as the stock, which has closed on Friday at Rs.326.45, opened higher today at Rs.331.45 and rose to an intraday high at Rs.335.60. Its 10% UC for the day is at Rs.359.05.