Marico Q4 FY25: Volume Uptick, Revenue Growth, Margin Pressure

New Delhi, Apr 3 (PTI) Marico has witnessed a sequential uptick in volume with an improvement in market shares across its key franchises during January-March quarter of FY25, but the company expects a contraction in gross margins due to high copra and vegetable oil prices, the home-grown FMCG firm said in a quarterly update on Thursday.

During the quarter, the FMCG sector experienced stable demand trends amidst the improving trajectory in rural and mixed trends across mass and premium urban segments.

"In the given context, the India business posted a sequential uptick in underlying volume growth with improving market shares across key franchises," said Marico, which owns brands such as Saffola, Parachute and Livon.

Its Parachute Coconut Oil witnessed transient sluggishness in volumes due to lower consumption amidst the steep rise in consumer pricing and impact of grammage reduction in certain packs.

"We expect volumes to pick up as the stress on the consumer wallet eases, driven by the seasonal moderation in copra prices from their current unprecedented highs," it said, adding, Parachute brand "recorded high teen revenue growth, aided by pricing interventions taken through the current year".

Its Saffola Oils also registered "revenue growth in the twenties" led by pricing interventions implemented during the year.

While, its value added hair oils, which includes Hair & Care, Nihar Naturals and Parachute Advansed, exhibited gradual improvement on a sequential basis led by mid and premium segments.

"The franchise is expected to continue an improving growth trajectory during the course of next year," it said.

Its foods (under the brand Saffola) and premium personal care, including digital-first brands of the Mariwala family-promoted company also sustained momentum, it said.

Marico's international business delivered mid-teen constant currency growth driven by broad-based growth across most markets.

"Bangladesh continued to demonstrate strong resilience with double digit constant currency growth," it said, adding MENA (Middle East and North Africa) and South Africa also continued their double-digit growth momentum,.

Over its consolidated revenue growth, Marico said it has "moved to high-teens on a year-on-year basis", helped by incremental pricing interventions in the domestic business.

"The consolidated business delivered low double-digit revenue growth on a full-year basis, thereby meeting the aspiration set at the start of the year. We expect to maintain the double-digit revenue growth momentum in FY26," it said.

Over the commodity inflation, Marico said key inputs such as copra and vegetable oil prices remained firm at peak levels, while crude oil derivatives remained range-bound.

"The contraction in gross margin is expected to be largely in line with the preceding quarter. We also sustained aggressive investments in brand building in line with our strategic intent to continually strengthen the long-term equity of our franchises and accelerate diversification," it said.

Regarding the outlook of the FMCG sector, Marico said it expects a gradual improvement in consumption on the back of moderating retail and food inflation as well as forecasts of a normal monsoon.

"The company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and scale up of new engines of growth," it said.

According to Marico, this update seeks to provide an overall summary of the operating performance and demand trends witnessed during the quarter ended March 2025.

"A detailed information update will follow this once the board approves the financial results for Q4 FY25," it said.

Shares of Marico Ltd on Thursday settled at Rs 660.70 on BSE, up 0.63 per cent from the previous close.