Marico slides as rising commodity prices dampen rural demand in Q4

6 Apr 2022 , 09:35 AM

The FMCG major said that in Q4 quarter, consumption trends remained subdued amid weak rural sentiment and inflation in global commodities due to geopolitical tensions.

Consolidated revenue growth in the quarter touched high single digits, it said. The company expects a marginal growth in profits in Q4 due to a rise in input costs and higher advertising and promotional spending.

While companies affected price hikes across FMCG categories to cope with the cost-push, persistent inflation continued to hurt consumer wallets across rural and urban, it added.

Quoting a Nielsen study, Marico said FMCG volumes declined in the Jan-Feb 2022 period on a year-on-year basis.

The India business stayed relatively firm, riding on focused execution and market share gains. The domestic revenue growth in the quarter was in low single digits.

The International business delivered double-digit constant currency growth on a strong base, with all markets faring well. The business has registered a stellar mid-teen constant currency growth in FY22, it said.

Marico took calibrated price increases in the Value Added Hair Oils and Saffola Edible Oils portfolios during the quarter. Consequently, gross margin is expected to be at similar levels as the same quarter last year. A&P (advertising & promotional) spends were higher on a year-on-year basis.

Marico aims to deliver sustainable and profitable volume-led growth over the medium term.

Marico is one of Indias leading consumer products companies in the global beauty and wellness space. Its portfolio includes brands such as Parachute, Saffola, Saffola FITTIFY Gourmet, Saffola ImmuniVeda, Saffola Mealmaker, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Coco Soul, Revive, Set Wet, Livon and Beardo.

Maricos consolidated net profit rose 1.60% to Rs 317 crore on a 13.43% jump in revenue from operations to Rs 2,407 crore in Q3 FY22 over Q3 FY21.

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