Marico reported a nearly 8 per cent increase in its consolidated net profit to Rs 273 crore for the September quarter. This was led by strong volume growth in its domestic business (11 per cent) and a stable performance in international markets.
Q2 revenue was up nearly 9 per cent to Rs 1,989 crore, led by sales of key brands Parachute and Saffola. The cooking oil and packaged foods portfolio under Saffola, in particular, saw strong double-digit growth, benefiting from sustained in-home consumption, analysts said.
Saugata Gupta, managing director and chief executive, said: “The sector has witnessed some green shoots of revival with the gradual easing of lockdown restrictions. The inherent strength of our franchise and deep distribution network has allowed us to deliver strong growth in Q2.”
Total expenses were up nearly 8 per cent to Rs 1,641 crore in Q2, as the firm witnessed inflationary trends.
However, it optimised brand-building spends in non-core portfolios and drove a variety of cost-saving initiatives to help tide over input cost pressures.
Despite this, the firm’s operating margins were down 30 basis points year-on-year to 20.7 per cent.