Marico: On April 5, Marico shares increased 3% as investors celebrated the company’s encouraging business updates for the fourth quarter that concluded in March.
At 1:16 PM, Marico shares were priced at Rs 503.05 on the NSE.
In its Q4 update, the company reported that its international operations have resumed strong double-digit growth in constant currency. Additionally, the company foresees an upward trajectory in Q4 consolidated revenue, albeit with modest single-digit growth, marking a return to positive territory after three-quarters of the decline.
Furthermore, Marico anticipates that domestic revenue growth will exceed volume growth in the upcoming quarters, accompanied by significant gross margin expansion compared to the previous year.
“During Q4, the domestic business experienced a modest increase in volume growth compared to the previous quarter, attributed to stabilizing trends across the majority of its portfolios,” stated Marico.
Meanwhile, the company also suggested that its core categories are poised for gradual growth in the future.
Against the backdrop of improving macroeconomic indicators, we anticipate a gradual increase in the growth of our core categories. This will be facilitated by our ongoing efforts to boost the profitability of our General Trade (GT) channel partners, as well as targeted investments aimed at expanding our direct reach to both urban and rural outlets over the next few years, the statement read.
Regarding key products, Parachute coconut oil saw low single-digit volume growth in Q4, whereas Saffola oils experienced mid-single-digit volume growth. However, value-added hair oils had a challenging quarter, showing a decline from a high base.
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