Marico Eyes Double-Digit Growth in FY25 Amid Price Hikes and Strong Volume Gains In the December quarter, Marico reported a 5.2 per cent increase in net profit, with consolidated revenue from operations rising by 15.35 per cent to INR 2,794 crore. Gupta attributed this performance to consistent quarterly volume growth, noting that the core Parachute brand experienced positive volume increases.

Marico, an Indian fast-moving consumer goods (FMCG) company, anticipates double-digit revenue growth in the fiscal year 2025, driven by strategic price adjustments and improved sales volumes, according to managing director and CEO Saugata Gupta. Despite facing inflationary pressures on raw materials in the latter half of FY25, Gupta expects operating margins to remain around 20 per cent, supported by a robust cost management system.

"If you look at the volume growth trajectory every quarter, we have sequentially improved," Gupta told PTI. "I think the way we look at it is that we should be able to deliver double-digit revenue growth. Our aspiration is to deliver top quartile volume growth."

Marico's diversification into the food segment continues to gain momentum, with the category achieving an annual recurring revenue of INR 1,000 crore over the past two quarters. The company's digital business is also expanding, with two brands scaling up and maintaining low cash burn rates.

International operations remain strong, recording double-digit constant currency growth. "In spite of the fact that there have been some headwinds, we have been able to be resilient in some of the markets like Bangladesh," Gupta noted.

In response to an increase in import duties on edible oils last year, Marico raised prices for its Saffola brand and is considering further adjustments for its Parachute coconut oil line, contingent on copra price fluctuations. "As we move towards Q1 of the next fiscal, we expect copra prices to begin winding down," Gupta said.

The recent government budget, which includes tax incentives, is expected to bolster consumption, particularly in urban markets. "Food inflation is slightly easing," Gupta observed, adding that tax breaks for the middle class will "definitely improve sentiment."

However, Gupta cautioned that the positive impact on consumption would be gradual and spread across various sectors. "Some of the tax breaks are welcome and this is something which the government has done for the middle class which definitely boosts consumption," he said. "Having said that, that consumption will just not be channelised towards FMCG but different categories also."

In the December quarter, Marico reported a 5.2 per cent increase in net profit, with consolidated revenue from operations rising by 15.35 per cent to INR 2,794 crore. Gupta attributed this performance to consistent quarterly volume growth, noting that the core Parachute brand experienced positive volume increases.

This information is sourced from PTI.