FMCG major Marico is expected to post better-than-expected mid-teens consolidated sales growth during the third quarter of FY25, led by pricing growth, said brokerage firms. Morgan Stanley said that the company will post Q3 revenue growth in mid-teens, ahead of the estimate as demand trends remained steady with improved rural consumption and stable urban growth. The Parachute-maker is expected to report sequential improvement in domestic volume growth, it added.
Another analysis report by Macquarie stated that Marico’s Q3 business update points to a sequential pickup in domestic volume growth during the quarter and a better-than-expected mid-teens consolidated sales growth. The EBITDA growth, it added, should remain largely in line at around 5 per cent.
Also ReadVodafone Idea unlikely to have aggressive 5G pricing strategy
Marico had issued a price hike at the end of Q3 due to copra inflation. In its December quarter business update, Marico had announced that with the copra prices remaining higher-than-expected, the company may post gross margin contraction on a year-on-year basis. “Among key inputs, copra prices remained firm at higher-than-expected levels and vegetable oil prices moved up during the quarter, while crude oil derivatives remained rangebound. The rising trend in input costs is expected to result in a higher-than-anticipated gross margin contraction on a year-on-year basis, as the Company continued to favour consumer franchise expansion in the current environment. We also sustained investments in brand building in line with our strategic intent to continually strengthen the long term equity of our franchises and accelerate diversification,” Marico said in a regulatory filing, while maintaining that as a result of this, the company is expected to record a modest operating profit growth on a year-on-year basis.
Also Read IIFL Home Finance expects 15 per cent AUM growth in FY25 GST, Inflation, GDP growth among most trending economic topics on Google trend in December Fresh hikes to test FMCG pricing power Cement industry to witness recovery in H2FY25 amid competitive pricing dynamics; Know more on pricing movement
The FMCG major said that it will focus on its stated volume-driven revenue growth aspiration while remaining watchful on the margin front in the near term.
The consolidated business, it said, delivered mid-teen revenue growth on a year-on-year basis, thereby staying on course to meet the double-digit growth aspiration on a full year basis.
» Read More
