Marico said on Wednesday that its consolidated revenue will be in the low single digits year on year in the December quarter due to a muted recovery in rural demand amid elevated inflation.
“Urban and premium categories maintained their steady pace of growth. However, recovery in rural demand was not as discernible as retail inflation stayed at elevated levels,” Marico said in an official statement.
The statement added that lower commodity inflation, higher crop realisations, ongoing government interventions, and likely stimulus from the upcoming Union Budget bode well for the sector in the coming calendar year.
According to the company, the India business improved slightly over the previous quarter to post mid-single-digit volume growth. After a visible recovery in December, Parachute Coconut Oil posted low single-digit volume growth as consumer pricing stabilised and copra prices firmed up in the off-season.
However, the company anticipates that the brand will grow in line with its medium-term goals.
“The Saffola franchise grew in double digits in value terms with Saffola Oils posting low teen volume growth and Foods continuing its strong run towards the stated revenue aspiration,” it stated.
As per the company, value added hair oils had a subdued quarter, which was mainly a reflection of tepid sentiment in rural and mass personal care categories. Premium Personal Care, on the other hand, witnessed double-digit growth in line with sectoral trends.
“The International business continued its healthy growth momentum with high single-digit constant currency growth, even while contending with implications of currency depreciation and high inflation in key markets,” the firm said in its regulatory filing.
Bangladesh remained stable despite challenging macroeconomic conditions, while other markets performed well, according to the statement.
“Furthering our strategy of increasing the total addressable market in key markets, the acquisition of female personal care brands, Purité de Prôvence and Oliv, will provide a fillip to the Vietnam business,” the statement added.
The company said, “As we witnessed some semblance of stability in key input prices and consumer pricing across key franchises, gross and operating margins are expected to improve both on a sequential and year-on year basis. In view of the lower revenue growth, we expect a modest growth in operating profit.”
“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 scaling up new engines of growth,” it added.
During the fiscal year 2021-22, Marico generated approximately Rs 95 billion in revenue from its products sold in India and selected markets in Asia and Africa.
With brands such as Parachute, Parachute Advansed, HairCode, Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, Thuan Phat, and Isoplus, the international consumer products portfolio accounts for approximately 23 per cent of the Group’s revenue.