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Marico logs double-digit volume growth in Q1

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FMCG firm Marico Ltd’s domestic business has witnessed over 30 per cent growth in the April-June quarter helped by double-digit volume growth.

The company is seeing “improving demand trends”, as the second wave appears to be receding and the vaccination drive is progressing steadily,” said Marico in its quarterly update for Q1 FY22.

“The India business delivered 30 per cent plus revenue growth, backed by a robust double-digit volume growth,” the company said.

“However, gross margins will remain under pressure in this quarter due to consumption of higher-cost inventory and will improve from Q2 onwards,” it added.

In the domestic market, Marico’s Parachute Coconut Oil delivered ahead of “medium-term expectations” and Saffola Edible Oils posted “low double-digit volume growth”, despite a high base, it added.

“Value-Added Hair Oils recovered smartly across the entire franchise, albeit on a low base, which was due to billing constraints during most of April last year. The Foods portfolio revenue more than doubled year-on-year with the Oats franchise continuing its strong run and recent launches scaling up well in line with medium-term expectations,” it said.

Its premium personal care, which constitutes less than 5 per cent of domestic revenues also recovered “sharply over last year, but ended below pre-COVID levels,” it added.