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Packaged consumer goods company Marico Ltd, on Friday, reported a 14.07 per cent jump in quarterly net profit as its foods business in India, including oats, honey, and cooking oil, reported strong growth. However, inflationary pressures impacted gross margins. The company makes edible oil and oats under Saffola and Parachute hair oil, among a range of products.
The magnitude and reach of the ongoing second covid wave in India remain “concerning”, Marico said in its earnings release. The extent and duration of the impact of the current covid wave on business environment and consumption cannot be predicted, it said. “We have witnessed some impact on business in the last 10 days of April and will continue to track the situation as it evolves,” the company said.
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For the three months ended 31 March, the company reported Rs227 crore in net profit. The same stood at Rs199 crore in the year-ago period. Revenue from operations surged 35 per cent to Rs2,012 crore from the Rs1,496 crore it reported in the year-ago period, the company said. Domestic volumes were up 25 per cent, exceeding analyst expectations.
It also took price hikes across key brands—to the tune of 4 per cent in its core Parachute hair oil portfolio, besides a price hike in edible oils. “In Q4, market prices of copra were higher by 25 per cent year-on-year mainly due to leaner supplies and lower coconut to copra conversion. The company expects prices to cool off from Q1FY22 as the peak season sets in,” it said. Marico also reported “significant” inflation in global vegetable oil prices. It took further price hikes in select brands in the current quarter. “Within the quarter, the company witnessed sequential hardening of input prices in March, which has necessitated further pricing action in Q1FY22 in select core brands,” it said. Most of the company’s core portfolios kept up the momentum seen over the last couple of quarters.
