Homegrown FMCG major Marico Ltd on Friday (January 3) reported a mid-teen year-on-year (YoY) growth in consolidated revenue for the third quarter, driven by a combination of improving rural demand and stable urban sentiment. The company saw sequential volume growth in its domestic business, supported by sustained market share gains across key product categories.
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In the domestic segment, Parachute Coconut Oil exhibited resilience despite rising input costs and price adjustments. The brand posted low teen revenue growth, supported by pricing interventions during the year. However, sequential volumes moderated slightly as copra prices remained firm, prompting another price increase toward the end of the quarter.
Saffola Oils showed stability in volume despite steep price increases in response to higher vegetable oil costs. The brand delivered high teen revenue growth, reflecting robust consumer demand. Value-added hair oils faced challenges in the bottom-of-the-pyramid segment due to competitive pressures. However, recovery in the mid and premium segments helped mitigate the impact, showing improvement compared to the previous quarter.
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Meanwhile, Marico’s foods and digital-first brands sustained strong growth, continuing to perform ahead of expectations.
On the international front, the business achieved broad-based mid-teen growth in constant currency terms. Bangladesh delivered high double-digit growth, showcasing resilience and strength in its key markets. Vietnam, however, faced challenges amid a sluggish consumption environment, while MENA and South Africa maintained double-digit growth momentum, reflecting strong regional performances.
Input cost pressures continued to challenge margins, with copra prices staying higher than anticipated and vegetable oil prices rising. However, crude oil derivatives remained stable during the quarter. Marico expects a higher-than-anticipated gross margin contraction on a YoY basis, as it prioritises consumer franchise expansion and sustained investments in brand building.
Operating profit growth for the quarter is expected to remain modest, but the company remains committed to its long-term strategy of volume-led revenue growth. Marico emphasised its focus on enhancing the brand equity of its core franchises while scaling new growth engines, particularly in foods and digital-first brands.
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“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 scale up of new engines of growth,” Marico said.
Despite near-term margin pressures, Marico is on track to meet its double-digit growth target for the fiscal year.
Shares of Marico Ltd ended at ₹660.95, up by ₹7.60, or 1.16%, on the BSE.
(Edited by : Shoma Bhattacharjee)
