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5h ago

Marico Guides Q2 Revenue Growth in the ‘Thirties’ on Pricing and GST Gains

Management flags modest operating profit growth, citing pre-GST discounts, elevated input costs.

The maker of Parachute hair oil and Saffola foods also projected modest growth in operating profit on a year-on-year basis.
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Overview

  • India volumes held in the high single digits despite short-term trade disruption from September GST rate changes.
  • About 30% of the India portfolio benefited from GST rationalisation, with price cuts passed through to consumers.
  • Operating profit will be capped by extended channel discounts before GST 2.0 implementation and by commodity-driven margin pressure, with easing guided for the second half.
  • The international business maintained constant-currency growth in the ‘twenties’, led by outperformance in Bangladesh and MENA.
  • Category update: Parachute saw a low single-digit volume decline after sharp price hikes of over 60% year on year; Saffola oils volumes were flattish with high-teens revenue growth; value-added hair oils grew in the high teens.