Marico Shows Resilience Amid Inflationary Pressures in Q1 FY25
Marico anticipates a modest operating profit for the June quarter, despite inflationary pressures in key raw materials like copra. While rural demand showed improvement, gross margins faced incremental pressure due to high base effects. The FMCG company continues to invest in brand-building and expects margin pressures to ease later in the year.
- Country:
- India
Marico, a home-grown FMCG giant, projects a modest operating profit for the June quarter. This outlook comes amid continued inflation in key raw materials such as copra, as noted in its latest updates.
Although vegetable oil prices improved following government import duty cuts and crude oil derivatives remained stable, the company highlighted ongoing gross margin pressures. These pressures are attributed to a high base and pricing-led denominator effects, yet Marico is steadfast in its brand-building investments to bolster long-term franchise equity.
The company, known for brands like Saffola and Parachute, expects gross margin relief in the year's second half. Despite input cost challenges, a consistent demand pattern emerged, especially in rural areas. International business also reported growth, ensuring consolidated revenue growth in the low twenties year-on-year.
(With inputs from agencies.)
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