Consumer goods major Marico Ltd on Saturday reported a 3.3 per cent rise in net profit. Parachute Coconut Oil maker reported a profit of ₹377 crore for the first quarter of FY 2023, while the company reported a profit of ₹365 crore for Q1FY22. The company’s operating revenue grew 1.3 per cent to ₹2,558 crore for Q1FY23 as against the reported revenue of ₹2,525 crore for Q1FY22.
Marico’s total expenses declined to ₹ 2,076 crore from ₹ 2,085 crore in Q1 FY22. Revenue from the domestic market declined by 3.56 per cent to ₹1,921 crore from ₹1,992 crore earlier.
However, its revenue from international sales grew by 19.51 per cent to ₹637 crore as compared to ₹533 crore in Q1 FY22.
While the company’s profits rose, volumes declined as its two largest brands declined due to price increases. Parachute Hair Oil and Saffola Cooking Oil maker’s net profit jumped 48 per cent sequentially to Rs 371 crore for the quarter ended June 30.
According to the analyst’s report, the volumes of the FMCG sector are declining for the third consecutive report. Even before the results of Q1FY23 were announced, most of the FMCG companies noted that inflationary pressures would persist.
In its annual report, Marico said margin pressure would improve in the second half of FY13.
Saugat Gupta, MD and CEO, Marico said, “As the years went by, the impact of the pandemic on public health in India decreased and the level of mobility increased. However, since then, consumers have allocated a lesser share of wallets to FMCG due to multi-year high inflation and reduced demand in the discretionary and out-of-home categories.
August 06, 2022