📷 Image Credits: Moneycontrol
Marico, a prominent FMCG major, recently announced that their domestic business experienced a modest uptick in volume growth during the first quarter of FY25. The company mentioned in their business update on July 5 that the volume growth was primarily driven by adjustments in distributor stock levels to enhance their ROI and certain wholesale channel destocking initiatives to facilitate smoother direct reach expansion through Project SETU.
Despite facing a tepid single-digit volume growth in Parachute Coconut oil by the end of June 30, Marico remains optimistic about the volume picking up throughout the rest of the year due to consistent offtake in growth. Additionally, the Saffola Oils brand saw a mid-single digit growth in volume, attributed to market stability in input and consumer pricing. The company also mentioned that their value-added hair oils had a soft start to the year due to competitive headwinds in the bottom of the pyramid segment, while mid and premium segments performed relatively better, with expectations of portfolio growth in the next quarter.
Marico highlighted the impressive performance of their foods and digital-first brands, mentioning that they sustained robust momentum and surpassed their stated aspirations. Furthermore, the international business of Marico delivered double-digit constant currency growth, driven by resilient and broad-based growth across various markets.
In terms of the stock market, Marico’s stock price closed 1.14 percent higher at Rs 615 on NSE, reflecting positive investor sentiment. Overall, Marico’s strategic adjustments and product portfolio performance indicate a promising outlook for the company amidst the evolving market dynamics and consumer preferences in the FMCG sector.
