2 hrs ago
Marico Expects Double-Digit Growth and to Surpass Guidance
Marico makes products such as cooking oil and hair oil.
The company says its sales grew strongly in the second quarter of FY27.
It expects its India business to see strong growth, especially in some hair oil products.
Its newer food and personal care businesses also kept growing.
Marico expects its international business to grow too, with several markets doing well.
Some raw material costs changed, but copra prices stayed below their earlier peak.
The company expects its profit from operations to grow in the mid-twenties.
Marico says it may do better than its near-term financial goals.
Marico expects consolidated revenue to grow at a double-digit rate in Q2FY27, supported by its core, digital and international businesses.
The company expects underlying volume growth in India to reach double digits, with Parachute Coconut Oil and Value Added Hair Oils leading performance.
Foods and Premium Personal Care businesses continued to grow in line with expectations, supporting Marico’s diversification strategy.
International business is expected to deliver constant-currency growth in the teens, led by Vietnam, the Middle East and South Africa.
Marico expects year-on-year gross margin acceleration and operating profit growth in the mid-twenties, and says it is likely to surpass near-term guidance.
- Who
- Marico, the consumer goods company.
- What
- The company issued a Q2FY27 business update, forecasting double-digit consolidated revenue growth and saying it may surpass near-term guidance.
- Where
- Marico’s India and international businesses, including Vietnam, the Middle East, South Africa and Bangladesh.
- When
- Q2FY27; the update also refers to performance through the first half of FY27.
- Why
- Marico attributed its outlook to strong performance across core, digital and international portfolios, domestic demand for premium products, and favourable portfolio mix and copra-price effects on gross margin.
Key facts
- Consolidated revenue
- Expected to grow at a double-digit rate in Q2FY27.
- India underlying volume growth
- Expected to reach double digits.
- Parachute Coconut Oil
- Expected to post early-teens volume growth.
- Value Added Hair Oils
- Expected to grow in the twenties for the sixth consecutive quarter.
- International business
- Expected constant-currency growth in the teens.
- Copra prices
- Reported as rangebound at around 35% below peak levels.
- Operating profit
- Expected to grow in the mid-twenties during the quarter.
- Near-term guidance
- Marico said strong first-half performance puts it on track to surpass guidance across key financial parameters.
Quotes
Marico
Consumer goods company that issued the Q2 update.
“With a strong performance through the first half of the year, we are likely to surpass our near-term guidance across key financial parameters, anchored in the sustained strength of our core franchises and the scale-up of new growth engines.”
financialexpress.com
“Consolidated revenue is expected to grow in double digits with strong performance across our core, digital and international portfolios, underscoring the effectiveness of our strategic priorities and execution discipline.”
financialexpress.com
Sources
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