Marico Q1 Update: Revenue To See Single Digit Growth As Parachute, Saffola Drag
The company expects consolidated revenue growth to trend upwards during the year, on the back of improving domestic volume growth.
Marico Ltd.'s consolidated revenue grew in high single digits in the April-June quarter of fiscal 2025, despite the residual impact of price cuts in the key Saffola Oils portfolio and currency headwinds in overseas markets.
The company expects consolidated revenue growth to trend upwards during the year, on the back of an improving trajectory in domestic volume growth and higher realisations due to the favourable pricing cycle in key domestic portfolios, according to a quarterly business update released on Friday.
Marico's international business delivered double-digit constant currency growth.
Gross margin is expected to expand year-on-year. While, operating profit is estimated to grow slightly ahead of revenue, leading to a marginal inching up of operating margin on a year-on-year basis.
Segment Performance
Parachute Coconut Oil posted low single-digit volume growth in the quarter.
Saffola Oils delivered mid-single digit volume growth amid marked stability in input and consumer pricing.
Value Added Hair Oils had a soft start to the year due to competitive headwinds persisting in the bottom of the pyramid segment, while the mid and premium segments fared relatively better.
Foods and digital-first brands sustained their robust momentum.
Shares of Marico Ltd. closed 1.23% higher at Rs 615.3 apiece, ahead of the announcement, compared to a flat BSE Sensex on Friday.
