Marico Navigates GST Changes with Steady Growth Amidst Inflation
Marico reports stable growth despite challenges from new GST reforms and high commodity prices. The company anticipates modest operating profit growth, driven by volume growth and strategic measures. As GST benefits spur demand, Marico aims for sustainable and profitable growth backed by brand-building investments.
- Country:
- India
Marico has successfully navigated the challenges posed by recent GST changes, achieving high single-digit volume growth in its domestic market for the second fiscal quarter. Despite the pressures of high commodity prices and transitional trade disruptions, the company expects modest year-on-year profit growth.
In a recent update, Marico highlighted the government's GST 2.0 reforms as a catalyst for long-term growth in the FMCG sector. The revised GST rates benefit 30% of Marico's Indian business, and the company has passed these advantages on to consumers by reducing prices across various product categories.
Internationally, Marico remains robust, with notable growth in Bangladesh and MENA regions. Despite coping with fluctuating commodity prices, Marico continues to invest in brand-building, maintaining a strategic focus on its mid and premium segments to ensure sustained growth in the future.
(With inputs from agencies.)
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