FMCG firm Marico Ltd reported high single-digit consolidated revenue growth for the July-September quarter. While͏͏ higher͏͏ realisations͏͏ in͏͏ the͏͏ domestic͏͏ market͏͏ supported͏͏ growth,͏͏ incremental͏͏ currency͏͏ headwinds͏͏ in͏͏ certain͏͏ overseas͏͏ markets͏͏ offset͏͏ some͏͏ gains.͏͏ In͏͏ its͏͏ Q2͏͏ update͏͏ filed͏͏ with͏͏ the͏͏ bourses,͏͏ Marico͏͏ noted͏͏ stable͏͏ demand͏͏ trends͏͏ in͏͏ the͏͏ sector,͏͏ with͏͏ rural͏͏ areas͏͏ outperforming͏͏ urban͏͏ ones͏͏ year-on-year͏͏ for͏͏ the͏͏ third͏͏ consecutive͏͏ quarter.
Anticipated͏͏ Double-Digit͏͏ Growth͏͏ Ahead:
“Consolidated͏͏ revenue͏͏ growth͏͏ stayed͏͏ in͏͏ the͏͏ high͏͏ single͏͏ digits,͏͏ with͏͏ higher͏͏ realisations͏͏ in͏͏ the͏͏ domestic͏͏ market͏͏ offset͏͏ by͏͏ incremental͏͏ currency͏͏ headwinds͏͏ in͏͏ certain͏͏ overseas͏͏ regions.͏͏ We͏͏ anticipate͏͏ consolidated͏͏ revenue͏͏ growth͏͏ to͏͏ reach͏͏ double͏͏ digits͏͏ in͏͏ the͏͏ second͏͏ half͏͏ of͏͏ the͏͏ year,”͏͏ the͏͏ company͏͏ stated.
Marico͏͏ stated͏͏ it͏͏ expects͏͏ to͏͏ achieve͏͏ “double-digit͏͏ revenue͏͏ growth͏͏ this͏͏ year.”
“Given͏͏ the͏͏ higher-than-expected͏͏ inflation͏͏ in͏͏ copra͏͏ prices,͏͏ the͏͏ sharp͏͏ increase͏͏ in͏͏ import͏͏ duties͏͏ on͏͏ vegetable͏͏ oils,͏͏ and͏͏ potential͏͏ uncertainties͏͏ in͏͏ crude͏͏ oil͏͏ prices͏͏ due͏͏ to͏͏ recent͏͏ geopolitical͏͏ tensions,͏͏ the͏͏ company͏͏ will͏͏ prioritise͏͏ its͏͏ revenue͏͏ growth͏͏ targets͏͏ while͏͏ closely͏͏ monitoring͏͏ margins͏͏ in͏͏ the͏͏ second͏͏ half͏͏ of͏͏ the͏͏ year,”͏͏ it͏͏ added.
In͏͏ the͏͏ second͏͏ quarter,͏͏ the͏͏ domestic͏͏ business͏͏ recorded͏͏ mid-single-digit͏͏ volume͏͏ growth,͏͏ showing͏͏ improvement͏͏ compared͏͏ to͏͏ the͏͏ previous͏͏ quarter,͏͏ it͏͏ added.
Continue͏͏ Exploring:͏͏ Marico targets͏͏ growth͏͏ in͏͏ healthy͏͏ snacking͏͏ segment͏͏ by͏͏ enhancing͏͏ Saffola͏͏ portfolio
Parachute͏͏ Coconut͏͏ Oil͏͏ Drives͏͏ Revenue:
The͏͏ company’s͏͏ ‘Parachute’͏͏ coconut͏͏ oil͏͏ achieved͏͏ nearly͏͏ mid-single-digit͏͏ volume͏͏ growth,͏͏ although͏͏ this͏͏ was͏͏ partially͏͏ affected͏͏ by͏͏ a͏͏ reduction͏͏ in͏͏ ‘ml-age’͏͏ (volume)͏͏ in͏͏ one͏͏ of͏͏ the͏͏ key͏͏ price-point͏͏ packs͏͏ due͏͏ to͏͏ a͏͏ price͏͏ increase,͏͏ it͏͏ stated.
“The͏͏ brand͏͏ experienced͏͏ double-digit͏͏ revenue͏͏ growth,͏͏ supported͏͏ by͏͏ pricing͏͏ interventions͏͏ implemented͏͏ at͏͏ the͏͏ beginning͏͏ of͏͏ the͏͏ year,”͏͏ it͏͏ stated,͏͏ adding͏͏ that͏͏ Parachute͏͏ coconut͏͏ oil͏͏ underwent͏͏ another͏͏ price͏͏ increase͏͏ at͏͏ the͏͏ end͏͏ of͏͏ the͏͏ quarter͏͏ due͏͏ to͏͏ the͏͏ sequential͏͏ rise͏͏ in͏͏ copra͏͏ prices.
Saffola͏͏ oils͏͏ recorded͏͏ low͏͏ single-digit͏͏ revenue͏͏ growth,͏͏ with͏͏ the͏͏ pricing͏͏ cycle͏͏ for͏͏ the͏͏ brand͏͏ turning͏͏ slightly͏͏ favourable͏͏ after͏͏ eight͏͏ quarters,͏͏ Marico͏͏ stated.͏͏ It͏͏ also͏͏ noted͏͏ that͏͏ value-added͏͏ hair͏͏ oils͏͏ remained͏͏ subdued͏͏ due͏͏ to͏͏ competitive͏͏ pressures͏͏ in͏͏ the͏͏ bottom-of-the-pyramid͏͏ segment.
“We͏͏ anticipate͏͏ gradually͏͏ improving͏͏ demand͏͏ trends͏͏ in͏͏ the͏͏ future,͏͏ supported͏͏ by͏͏ visible͏͏ ATL͏͏ (above-the-line)͏͏ investments͏͏ and͏͏ brand͏͏ activations͏͏ across͏͏ key͏͏ franchises,”͏͏ it͏͏ added.
Strong͏͏ Performance͏͏ from͏͏ Foods͏͏ and͏͏ Digital͏͏ Brands:
Foods͏͏ and͏͏ digital-first͏͏ brands͏͏ maintained͏͏ their͏͏ strong͏͏ momentum͏͏ and͏͏ exceeded͏͏ growth͏͏ expectations,͏͏ thereby͏͏ upholding͏͏ the͏͏ planned͏͏ pace͏͏ of͏͏ diversification,͏͏ the͏͏ company͏͏ stated.
The͏͏ international͏͏ business͏͏ achieved͏͏ strong͏͏ low-teen͏͏ constant͏͏ currency͏͏ growth͏͏ in͏͏ the͏͏ second͏͏ quarter,͏͏ with͏͏ each͏͏ market͏͏ contributing͏͏ positively.
“Bangladesh͏͏ recorded͏͏ high-single-digit͏͏ growth,͏͏ showcasing͏͏ the͏͏ resilience͏͏ of͏͏ our͏͏ business͏͏ model͏͏ in͏͏ a͏͏ challenging͏͏ operating͏͏ environment͏͏ that͏͏ has͏͏ now͏͏ largely͏͏ stabilised,”͏͏ Marico͏͏ stated.
The͏͏ company͏͏ also͏͏ noted͏͏ that͏͏ Vietnam͏͏ experienced͏͏ high͏͏ single-digit͏͏ growth,͏͏ while͏͏ the͏͏ Middle͏͏ East͏͏ and͏͏ North͏͏ Africa͏͏ (MENA)͏͏ and͏͏ South͏͏ Africa͏͏ continued͏͏ to͏͏ maintain͏͏ their͏͏ strong͏͏ double-digit͏͏ growth͏͏ trajectory.
