data update marico

India business revenue grew in low twenties in Jul-Sep, says Marico

-Marico: Discretionary, out-of-home consumption picked up Jul-Sep

-Jul-Sep India revenue growth was in low twenties

-Jul-Sep India volume growth was near double-digits

-Foods category on track to meet 5 bln rupees revenue in FY22

-International ops saw double-digit constant currency growth Jul-Sep

-See gross margin improving marginally in Jul-Sep QoQ

-Expect modest bottomline growth in Jul-Sep

-See Jul-Sep operating margin contract YoY

Marico Ltd's India business in Jul-Sep recorded revenue growth in the low twenties and close to double-digit volume growth on a two-year compounded annual growth rate basis.

In its update for Jul-Sep, the fast-moving consumer goods major said its headline products such as Parachute Coconut Oil and value added hair oils registered a double-digit volume growth, but edible oils in the Saffola franchise had a muted quarter due to trade destocking and lower in-home consumption triggered by volatility in prices of edible oils.

Among other key inputs, copra prices corrected further, while crude oil remained firm, the company said in the exchange filing.

The company expects a marginal improvement in gross margins compared to the last quarter, but due to the rise in input costs it may remain under pressure compared to last year.

The operating margin is also expected to contract compared to the same period last year due to the significant pricing growth in the topline. Therefore, the growth in net profits is expected to be modest.

The food portfolio revenue also rose in the quarter and remains on course to achieve 5 bln rupees this year, the company said. The premium personal care and digital-first brands also performed well during the quarter.

Double-digit constant currency growth was also seen in the international business, except Vietnam as the country was in stringent lockdowns due to a surge in COVID cases in the country.

During the quarter, the company also reworked the mix of Saffola Arogyam Chyawan Amrut and launched Saffola Immuniveda Chyawanprash after the initial response to the product was lukewarm.

Source : Eureka