- 04 Oct 2022
- ICICIdirect Research
Marico Business update for Q2FY23MARICO - 482 Change: 4.80 (1.01 %)
Marico's India business posted low single digit volume growth with Parachute sales declining by low single digit & VAHO sales growing at low single digit. With the decline in Edible oil prices, Saffola oil witnessed high single digit volume growth. Foods business grew in mid-twenties continuing the growth momentum. International business continue to grow in double digit. Gross margins expanded with commodity prices decline despite agrresive price cuts. Operating margins were maintained at similar level to corresponding quarter and profitability was impacted by higher income tax.
Marico India business continue to grow at a slower pace impacted by dismal volumes from saturated hair oil business & huge volatility in commodity prices. However, declining commodity prices are expected to settle down in next one quarter, which is expected to bring back volume growth across segments. We believe foods, digital only brands & international business would drive growth in future for the company.