Marico, the consumer products maker, reported on Friday that its consolidated third-quarter revenue dipped in the low single digits due to weakened rural demand. Despite this, the company witnessed a growth in profit in the low double digits, primarily attributed to reduced costs of key raw materials.
The manufacturer, known for producing personal care items like Parachute coconut oil, stated that its domestic volumes experienced a low single-digit growth for the quarter ending on December 31 compared to the same period last year.
The Saffola brand of cooking oils, one of Marico’s biggest brands, recorded an optically weak quarter due to cautious trade sentiment.
Inflation Impact on Marico and Dabur:
Consumer goods firms like Marico and Dabur, highlighting the effects of increased inflation on weakened rural demand, emphasized that the prevailing trend remains unchanged, describing the rural scenario as “offering little to cheer.” Despite this, Marico anticipates a robust gross margin expansion and low double-digit growth in operating profit for the third quarter, thanks to lower input costs.
For the quarter ended on September 30, Marico reported a profit below estimates, with a simultaneous drop in revenue.
Marico, with operations spanning Bangladesh, Vietnam, the Middle East, and Africa, attributed the decline in revenue to significant currency depreciation in specific overseas regions.
Meanwhile, on Friday, Godrej Consumer Products expressed its anticipation of achieving mid-single-digit volume growth and double-digit sales growth in constant currency terms at a consolidated level. However, it expects a low-single-digit sales decline when measured in rupees.
On Thursday, Dabur stated that it anticipates a mid- to high-single-digit expansion in its consolidated revenue for the third quarter, with rural growth trailing behind urban growth, impacting overall performance.
Continue Exploring: Dabur anticipates mid to high single-digit growth in Q3, fueled by robust performance in foods and beverages sector