Marico's Steady Growth Amid Economic Shifts

Marico reported steady demand trends and anticipates a gradual improvement in consumer spending. Easing inflation, favorable GST rates, and healthy crop sowing supported such optimism. Despite challenges, Marico achieved high year-on-year revenue growth, with brands like Parachute showing resilience amid elevated input costs.

Marico, a leading FMCG company, announced steady demand trends during the December quarter, expressing optimism for a gradual uptick in consumer spending. This confidence is bolstered by factors such as easing inflation, lowered GST rates enhancing affordability, MSP hikes, and a successful crop sowing season.

According to Marico's latest updates, the company's India business witnessed high single-digit volume growth, while consolidated year-on-year revenue growth surged into the high twenties, aligning with the company's full-year aspirations. Notably, Parachute brand managed to maintain resilience despite elevated input costs, recording marginal volume declines adjusted for ml-age reductions linked to price hikes.

A muted quarter for Saffola Oils was offset by value-added hair oils growing in the twenties. Marico expects sustained double-digit growth in this sector, supported by strategic investments in mid to premium segments, enhanced reach, and GST rate rationalization. The company's international business also continued its upward trajectory, particularly in Bangladesh, Vietnam, and South Africa.