Shares of FMCG major Marico on Thursday jumped to its day high of Rs 710 on the BSE following its second quarterly result. Marico’s domestic business posted min-single digit volume growth, exhibiting improvement on a sequential basis.
According to the stock exchange filing, Parachute Coconut Oil posted close to mid-single-digit volume growth, partially impacted by ml-age reduction in one of the key price-point packs in lieu of a price increase.
The brand recorded double-digit revenue growth aided by pricing interventions made at the start of the year. The brand has taken another round of price rise at the end of the quarter due to the sequential rise in copra prices.
Marico aims to grow food biz at 20-25% CAGR, scale to 2x by FY27
Marico’s Saffola Oils posted low single-digit revenue growth while the pricing cycle for the brand turned slightly favourable after eight quarters.
Value-added hair oils were subdued amidst competitive headwinds.
The international business delivered robust low teen constant currency growth with each of the markets contributing positively.
Bangladesh posted high-single-digit growth, the FMCG firm added that Vietnam business also grew in high single digits while MENA and South Africa maintained double-digit growth trajectories.
Marico has expected gross margin to moderate on a year-on-year basis owing to partial absorption of higher input costs as the FMCG major prioritized expanding its consumer franchise in the competitive market.
Marico diversifies portfolio, reduces dependence on Bangladesh amid political turmoil
“We expect a moderate lag in operating profit growth vis-à-vis revenue growth on a year-on-year basis,” the company said.
The company aims to deliver double-digit revenue growth in 2024.
“The Company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and scale up of new engines growth,” Marico said.