Parachute coconut oil delivered a strong performance, touching double-digit volume growth, its highest in several quarters
Parachute Coconut Oil maker Marico is expecting its consolidated revenue to grow in the early twenties, driven by a broad-based performance across its core, digital and international businesses. The company’s India business delivered double-digit underlying volume growth and reached a multi-quarter high.
In an exchange filing, the company said that parachute coconut oil delivered a robust performance, touching double-digit volume growth, its highest in several quarters. Saffola Oils recorded mid-single-digit price-led revenue growth. However, volumes declined as the company rationalised supply of select variants to maintain threshold profitability in the trade-off with volume growth.
Value-added hair oils delivered another strong quarter with revenue growth in twenties, supported by strategic focus on the mid and premium segments, enhanced direct reach driven by Project Setu. Foods and premium personal care (including digital-first brands) continued to scale-up in line with the company’s aspirations.
“Demand trends during the quarter remained steady, supported by resilient economic activity. Looking ahead, we remain optimistic about consumption trends, while closely monitoring the evolving inflationary conditions and the impact of El Niño on the monsoon,” the company pointed out.
The company noted that the international business continued its strong growth momentum with mid-teens constant currency growth led by outperformance in Vietnam and Mena alongside positive contribution from all other markets. Bangladesh experienced a transient moderation in growth.
Input Costs
Among key inputs, the cost of crude-linked derivatives and vegetable oils rose sharply during the quarter. Copra prices have corrected meaningfully, down around 45 per cent from peak levels, although they remain above historical averages.
Consequently, gross margin is expected to improve sequentially. ASP investments accelerated substantially as the company invested in brand building initiatives to strengthen the long-term equity of its franchises and drive portfolio diversification.
The company expects a strong operating profit growth driven by robust business growth and softening in copra prices.
