Marico Q4 update: Parachute coconut oil maker expects margins to expand in March quarter

Parachute coconut oil maker Marico expects the gross margin to expand and drive reasonable growth in operating profit on a year-on-year basis during the January-March quarter of FY23. This is mainly due to moderating raw material basket and improving portfolio mix, the FMCG company said.

During the quarter, the sector continued to witness gradual recovery with year-on-year volume trends improving in each quarter, Marico said in its fourth quarter business update on Monday, April 3.

The leading fast-moving consumer goods company further said, “While urban and premium categories were stable, easing of broader commodity inflation bodes well for overall consumption trends, especially in rural markets.”

Marico sounded positive in its fourth quarter business update with respect to growth perspective, unlike last quarter. It said, “The India business witnessed some improvement in year-on-year volume growth vis-à-vis the preceding quarters and stayed in the mid-single digit zone.”

“Parachute Coconut Oil posted a strong high single-digit volume growth, aided by stable consumer pricing while copra prices remained steady through the quarter,” the Harsh Mariwala-led company said in its regulatory filing.

In segment-wise growth, Marico said, “Value Added Hair Oils touched double-digit value growth. Saffola Oils remained stable sequentially but dipped on a YoY basis owing to a high absolute volume base. Foods continued to scale up well and Premium Personal Care also grew in double-digits.”

Moreover, the FMCG company also said the international business of the company maintained its stellar growth trajectory as it posted mid-teen constant currency growth. Globally, each market exhibited resilience despite a challenging global macro environment and currency headwinds, it added.

Marico is one of India’s leading consumer products companies in the global beauty and wellness space. During fiscal 2021-22, the company recorded a turnover of about Rs 95 billion (US $1.3 billion) through its products sold in India and chosen markets in Asia and Africa.

Shares of Marico (NSE: ‘MARICO’) ended flat with a positive bias at Rs 480.40 per share on the BSE.