FMCG major Marico anticipates a rebound in revenue growth in the second half of the fiscal year, with expectations of improving rural demand, according to Managing Director and CEO Saugata Gupta.
The company has adjusted prices following a softening of inflation in the domestic market over the last two quarters, impacting revenue growth but aiding market share and penetration in certain product lines, news agency PTI reported.
Gupta mentioned that revenue growth is projected to turn positive in H2 as pricing deflation in the domestic business gradually diminishes, it said.
In the past quarter, Marico reported a 17.2 per cent increase in consolidated net profit, while its revenue from operations slightly decreased to Rs 2,476 crore year-on-year (YoY). The company also noted a 3 per cent underlying volume growth in its domestic business.
According to the report, Gupta expressed optimism about rural markets, expecting gradual improvement as sentiments recover. He highlighted the positive impact of improved weather conditions in September and the anticipation of lapping a lower revenue base.
Regarding Marico’s food and premium personal care business, Gupta emphasised the success of the diversification journey. The company is focused on enhancing gross margins in the food segment and minimizing cash burns in the digital part of the premium personal care business. Marico aims for sustained growth of over 15-20 per cent in this sector of the business over the next few years.
The CEO revealed plans for food to contribute 50 per cent of the Saffola franchise’s revenue in the next four years, with a focus on scaling up products like honey and soya. Marico has introduced products such as oats, honey, soya and noodles under the Saffola brand.
Marico has acquired premium food brands Plix and True Elements and plans to further scale its food businesses.
Gupta underlined the company’s bullish outlook on snacking, mentioning the prototyping of ragi chips in that segment.
In terms of new portfolios, Marico includes digital-first brands like Set Wet, Beardo, and Just Herbs, operating in categories such as breakfast, immunity, plant protein, spreads and snacking. Gupta indicated a focus on range expansion rather than venturing into entirely new categories.
When asked about potential additions to the food space, Gupta stated that Marico already has two premium brands, Plix and True Elements, and does not foresee introducing new brands.
(Inputs from PTI)
