In Q2 FY25, Parachute Coconut Oil posted close to mid-single digit volume growth, partially impacted by ml-age reduction in one of the key price-point packs in lieu of a price increase. The brand recorded double-digit revenue growth, aided by pricing interventions made at the start of the year. It has taken another round of price increase at the end of this quarter given the sequential rise in copra prices.
Saffola Oils delivered low single digit revenue growth, while the pricing cycle for the brand turned slightly favourable after 8 quarters. Value Added Hair Oils was subdued amidst competitive headwinds in the bottom of the pyramid segment, but we expect gradually improving demand trends ahead on the back of visible ATL investments and brand activations across key franchises, it added.
Foods and Digital-first brands sustained their visibly strong momentum and scaled up well ahead of aspirations, thereby maintaining the pace of diversification as envisaged.
Marico’s international business delivered robust low teen constant currency growth with each of the markets contributing positively. “Bangladesh posted high-single digit growth, demonstrating the strong resilience of our business model amidst a challenging operating environment which has now largely stabilized,” company stated.
Further, Marico added that Vietnam also grew in high single digits, while MENA and South Africa maintained their robust double digit growth trajectory.
Consolidated revenue growth remained in high single digits, as higher realisations in the domestic business were offset by incremental currency headwinds in some overseas markets. Marico expects consolidated revenue growth to reach double digits in the second half of the year.
Among key inputs, copra prices rose beyond internal forecasts, and a recent import duty hike led to increased vegetable oil prices moving higher towards the end of the quarter, while crude oil derivatives remained stable.
The company anticipates delivering double-digit revenue growth this year. Due to higher-than-expected inflation in copra prices, sharp import duty increases on vegetable oils, and potential uncertainties in crude oil prices stemming from recent geopolitical tensions, Marico will focus on its revenue growth goals while closely monitoring margins in the second half of the year.
“The company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and scale up of new engines of growth,” it added.
Marico is one of India's leading consumer products companies in the global beauty and wellness space. Its portfolio includes brands such as Parachute, Saffola, Saffola FITTIFY Gourmet, Saffola ImmuniVeda, Saffola Mealmaker, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Coco Soul, Revive, Set Wet, Livon and Beardo.
Shares of Marico rose 0.91% to currently trade at Rs 699.70 on the BSE. The counter hit an all-time high of Rs 719.80 on the BSE.