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  • 06 Apr 2022
  • ICICI Securities

Marico sees marginal volume growth with single digit value growth in India business

MARICO - 529 Change: 18.05 (3.54 %)

News: In a quarterly update of Marico, the company saw marginal volume growth with single digit value growth in India business. Parachute saw volume decline whereas VAHO witnessed low single digit growth in value terms. With the sharp price hikes in last one year, the company saw double digit value growth in Saffola edible oil. With copra prices remaining soft, the company saw flat gross margins in Q4FY22

Views: The company saw low single digit volume growth mainly due to growth in Parachute on the back of softening copra prices & strong growth in foods & digital brands. We believe crude & rice-bran oil prices adversely impacted the growth for the company which would have been a strong quarter for the company

Impact: Neutral

related news

Marico posts Q4FY22 numbers

Marico reported 7.4% revenue growth to Rs2161 crore (I-direct estimate: Rs2193.8 crore) led by 5.1% growth in India business & 16.4% growth in International business. Domestic volume growth was 1% during the quarter. On a full year basis, volume growth was 7%. Gross margins were up by 33 bps. Marketing & Overhead spends increased by 84 bps & 36 bps respectively. Operating profit 8.5% to Rs346 crore with 16 bps improvement in operating margins. However, operating margins are much lower than its historical averages. Net profit saw a growth of 13.2% to Rs 256.9 crore.

06-May-2022 09:00