(Reuters) - Indian consumer goods maker Marico said on Thursday it expects consolidated first-quarter revenue to grow in the low-twenties percentage range, helped by robust performance across its core, digital and international businesses.
Here are the details:
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The maker of Parachute coconut oil and Saffola edible oils said its India business delivered double-digit underlying volume growth, reaching a multi-quarter high.
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The company expects strong growth in operating profit, driven by robust business performance and lower copra prices, despite a sharp increase in advertising and promotional spending.
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Parachute posted double-digit volume growth, its highest in several quarters, while the value-added hair oils segment recorded revenue growth in the twenties, supported by premium offerings and distribution expansion, the company added.
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Marico said its international business logged mid-teens percentage growth in constant currency terms, led by Vietnam and the Middle East and North Africa region, while demand in Bangladesh eased amid elevated inflation.
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Marico reported a 22% rise in revenue in the fourth quarter, helped by price hikes and steady demand, although it warned of shrinking margins after Middle East tensions drove up input costs.
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Marico said on Thursday it is closely monitoring the evolving inflationary conditions and the impact of El Nino on the monsoon.
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Consumer goods companies are navigating a mixed operating environment, with weaker monsoon rains and higher input costs threatening rural demand, analysts at Nomura said in a note.
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But healthy reservoir levels and record grain stocks are expected to provide some support, they added.
Reporting by Surbhi Misra in Bengaluru; Editing by Eileen Soreng
Source: Reuters