Marico Expects ‘Modest’ Operating Profit Growth In Q3 Amid Sequential Uptick

On the back of improving rural consumption and stable sentiment in urban as compared to the preceding quarter, Marico, a fast-moving consumer goods (FMCG) company has stated that its domestic business has posted a sequential uptick in underlying volume growth with sustained market share gains across key franchises.Sharing the updates on the performance during the third quarter of the current financial year (Q3FY25), the maker of Saffola, Parachute added that the rising trend in input costs is expected to result in a higher-than-anticipated gross margin contraction on a year-on-year basis.“We expect modest operating profit growth on a year-on-year basis. The Company will focus on its stated volume-driven revenue growth aspiration while remaining watchful on the margin front in the near term,” as per the statement.Parachute Coconut Oil was resilient amidst the rising input cost and pricing environment, albeit slightly moderating in volume terms on a sequential basis. The brand recorded low teen revenue growth, aided by pricing interventions during the current year. The brand has taken another round of price increase towards the end of this quarter as copra prices remained firm.As per the update, Saffola Oils held firm in volume terms despite steep pricing interventions in response to the rise in vegetable oil prices. The brand posted high teen revenue growth. Owing to competitive headwinds in the bottom of the pyramid segment, Value Added Hair Oils declined marginally.The company added, “The International business delivered broad based mid-teen constant currency growth. Bangladesh continued to demonstrate visible strength and resilience with high double digit constant currency growth. Vietnam had a soft quarter in a sluggish consumption environment. MENA and South Africa maintained their robust double digit growth momentum.”Among key inputs, copra prices remained firm at higher-than-expected levels and vegetable oil prices moved up during the quarter, while crude oil derivatives remained rangebound. The Company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term.