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Business News/ Markets / Stock Markets/  Marico stock rises 3% after company reports gradual uptick in Q4 growth
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Marico stock rises 3% after company reports gradual uptick in Q4 growth

In Q4, the domestic business posted a slight uptick in volume growth on a sequential basis owing to steadying trends in majority of the portfolios, it said.

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Marico

Marico shares surged by close to 3 per cent during intraday trading on Friday following a modest increase in volume growth for the fourth quarter. The stock was trading at 506.15, marking a 2.6 per cent rise from the previous day's closing price.

On April 5, the company posted a business outlook update for the fourth quarter. “During the quarter, FMCG demand sentiment stayed consistent vis-à-vis the preceding quarters with trends in urban and rural consumption largely converging," the company said in an exchange filing.

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In Q4, the domestic business posted a slight uptick in volume growth on a sequential basis owing to steadying trends in majority of the portfolios, it said.

“Parachute Coconut Oil registered low single-digit volume growth as we witnessed a continuing revival in loose to branded conversions amidst firming up of copra prices, which was along expected lines. Saffola Oils delivered mid-single-digit volume growth as trade-led headwinds subsided with input and consumer pricing exhibiting stability," the company informed.

Marico reported a modest increase in consolidated revenue, marking a return to positive territory following three consecutive quarters, driven by the gradual anniversary effect of pricing adjustments in crucial domestic segments. The company anticipates further growth in consolidated revenue going forward, with domestic revenue expected to surpass volume growth in the upcoming quarters.

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Food sales maintained their consistent growth throughout the year, reaching approximately four times the scale observed in FY20. Additionally, digital-first brands sustained their robust growth trajectory, aligning with our targeted portfolio diversification goal for the year.

"Amidst the backdrop of improving macro-indicators, we expect a gradual uptick in the growth of our core categories through the ongoing initiatives to enhance the profitability of our general trade (GT) channel partners and focused investments towards a transformative expansion in our direct reach footprint across urban and rural outlets over the next couple of years," the company said in a statement.

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Marico has affirmed its commitment to pursuing distinctive growth within urban-centric and premium segments via organized retail and e-commerce platforms. 

Furthermore, the company aims to vigorously broaden its portfolio by expanding its food and digital-first brands, while concurrently enhancing profitability metrics in alignment with its medium-term strategic objectives.

Marico shares has fallen over 5.22 per cent in the last six months and gained over 6.28 per cent in the last one year.

 

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Published: 05 Apr 2024, 05:12 PM IST
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