Marico's Strategic Growth Amidst Market Challenges: An FMCG Update

Marico reports sequential volume growth and market share improvements across its key brands in the January-March quarter of FY25, despite challenges due to high copra and vegetable oil prices. The company anticipates a recovery as consumer wallet stress eases. Internationally, Marico sees strong growth in Bangladesh, MENA, and South Africa.

Marico, a leading home-grown FMCG company, has reported sequential growth in volumes and market shares across its key brands for the January-March quarter of FY25. However, the company expects its gross margins to shrink due to elevated prices for key inputs such as copra and vegetable oil.

The FMCG sector showed stable demand trends with rural areas improving and mixed trends in urban mass and premium segments. Marico's India operations noted an increase in underlying volume growth and market shares for brands like Saffola and Parachute, despite Parachute Coconut Oil facing volume sluggishness due to pricing adjustments.

On the international front, Marico achieved mid-teen growth driven by strong performances in Bangladesh, MENA, and South Africa. The company's consolidated revenue grew to high-teens year-on-year, aided by strategic pricing efforts. Moving forward, Marico aims for sustainable growth supported by its strong brand equity and new growth initiatives.

(With inputs from agencies.)