Marico stocks soars 2% as the firm expects "modest" growth in Q3 numbers

5 Jan 2023 , 11:42 AM

Marico has informed to the exchanges in a regulatory filing that during the quarter, the sector witnessed some improvement in demand, which was more visible in specific categories buoyed by the festive fervor and oncoming winter season.

Urban and premium categories maintained their steady pace of growth. However, recovery in rural demand was not as discernible as retail inflation stayed at elevated levels, the FMCG major said in a filing. Easing of commodity inflation, higher crop realizations, ongoing government interventions and likely stimulus from the upcoming Union Budget augurs well for the sector in the forthcoming calendar year.

Marico-led Parachute Coconut Oil posted low single-digit volume growth after a visible recovery in December as consumer pricing stabilised with copra prices firming up in the off-season. Going forward, we expect the brand to deliver growth in line with medium term aspiration. The Saffola franchise grew in double digits in value terms with Saffola Oils posting low teen volume growth and Foods continuing its strong run towards the stated revenue aspiration.

Value Added Hair Oils had a subdued quarter, which was mainly a reflection of tepid sentiment in rural and mass personal care categories. Premium Personal Care, on the other hand, witnessed double-digit growth in line with sectoral trends.

The International business continued its healthy growth momentum with high single-digit constant currency growth, even while contending with implications of currency depreciation and high inflation in key markets. Bangladesh held steady despite challenging macros, while the other markets performed well.

‘Furthering our strategy of increasing the total addressable market in key markets, the acquisition of female personal care brands, Purité de Prôvence and Ôliv, will provide a fillip to the Vietnam business.

Consolidated revenue in the quarter grew in low single digits on a year-on-year basis’, the company said on Wednesday.

On Thursday, at around 11:50 AM, Marico was trading at Rs519.75 per share higher by 2.67% on the BSE.

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