Marico rose 2.23% to Rs 502.80 after the company said that the domestic business, in Q4, has posted a slight uptick in volume growth on a sequential basis owing to steadying trends in majority of the portfolios.
Parachute Coconut Oil registered low single-digit volume growth and the company witnessed a continuing revival in loose to branded conversions amidst firming up of copra prices, which was along expected lines. Saffola Oils delivered mid-single-digit volume growth as trade-led headwinds subsided with input and consumer pricing exhibiting stability.
Value Added Hair Oils had an optically weak quarter, declining on a high base amidst persistent sluggishness in the bottom of the pyramid segment. Foods continued its steady run to close the year at nearly 4x of its scale in FY20 and digital-first brands also sustained its strong growth trajectory, thereby meeting our stated portfolio diversification objective for the year.
Marico expects a gradual uptick in the growth of its core categories through the ongoing initiatives to enhance the profitability of the companys General Trade (GT) channel partners and focused investments towards a transformative expansion in direct reach footprint across urban and rural outlets over the next couple of years.
"We will continue our focus on driving differential growth in our urban-centric and premium portfolios through the organised retail and E-Commerce channels. We will continue to aggressively diversify the portfolio through the accelerated scale up of Foods and Digital-first brands and improve profitability parameters in line with our medium-term strategic priorities, the company said.
It further stated that the International business reverted to clocking double-digit constant currency growth, led by Bangladesh bouncing back from transient headwinds and rest of the markets maintaining their positive momentum.
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Consolidated revenue grew in low single digits, moving back into positive territory after 3 quarters, due to incremental anniversarizaton of pricing cuts in key domestic portfolios. The company expects consolidated revenue growth to trend upwards, with domestic revenue growth outpacing volume growth in the quarters ahead.
Among key inputs, copra prices inched up in line with forecasts, while edible oil and crude oil derivatives remained stable. In this context, the company expects strong gross margin expansion on a year-on-year basis.
The company also maintained investments behind brand building in line with the strategic intent to continually strengthen the long-term equity of both the core and new franchises. Consequently, Marico expects low double-digit operating profit growth on the back of a healthy expansion in operating margin, thereby staying on track to deliver on the margin guidance for the full year.
Marico is one of Indias leading consumer products companies in the global beauty and wellness space. During FY 2022-23, Marico recorded a turnover of INR 97.6 billion (USD 1.2 billion) through its products sold in India and chosen markets in Asia and Africa.
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