Saugata Gupta, CEO, said, "In an uncertain and difficult macro environment, we have focused on growth in consumer franchise. Such growth may come at a higher cost than before, but the investment would pay for itself in the long run."
Its net sales grew by 28.1 per cen to Rs 600.9 crore this quarter as compared to Rs 469.1 crore in the same period last year. Out of this growth, 15 per cent came from volume expansion. It maintained its market share in the branded coconut oil category at about 48 per cent. Its brands Parachute and Nihar grew in the range of 8 to 10 per cent in volume. Its Saffola refined edible oils franchise grew by 28 per cent in volume over previous quarter last year, led by Saffola Gold. The volume growth was boosted by the introduction of a new variant, Saffola Active. Its international business grew by 37 per cent and Kaya Skin Clinic business by 62 per cent this quarter over same period last year.
The company said that it faced inflationary pressures in input prices, across crude oil derivatives, polymers and edible oils. Price increases may protect absolute margins, but its percentage margins could suffer. Against this backdrop, Marico intends to think beyond the immediate quarter and maintain its focus on long term value creation. The company has no plans to cut down its advertising and promotion spends.
