Consumer goods major Marico Ltd. reported a 3.3 per cent increase in net profit on Saturday. The Parachute Coconut Oil maker reported a profit of ₹377 crore for the first quarter of fiscal 2023, against a profit of ₹365 crore the company reported for Q1FY22. Revenue for operations for the company rose by 1.3 per cent to ₹2,558 crore for Q1FY23, against revenue of ₹2,525 crore reported for Q1FY22.
Marico’s total expenses dipped to ₹2,076 crore from ₹2,085 crore in Q1 FY22. Revenue from the domestic market dropped 3.56 per cent to ₹1,921 crore as against ₹1,992 crore earlier.
However, its revenue from international sales climbed 19.51 per cent to ₹637 crore compared to ₹533 crore in Q1 FY22.
While profits for the company rose, volumes fell as steep price hikes led to downtrading across two of its largest brands. Net profit of the maker of Parachute hair oil and Saffola cooking oil rose 48 per cent sequentially to ₹371 crore in the quarter ended June 30, according to its exchange filing.
As per analyst reports, volumes for the FMCG sector are declining for the third straight reports. Even ahead of announcing results for Q1FY23, most FMCG companies noted that the inflationary pressures will continue to persist.
In their annual report Marico noted that that pressures on margins will improve towards the second half of FY23.
Saugata Gupta, MD & CEO, Marico, noted, “As the year progressed, the impact of the pandemic on public health in India reduced and mobility levels picked up. However, since then, multi-year high inflation and the unleashing of pent-up demand in discretionary and out-of-home categories have resulted in consumers allocating a lower share of wallet to FMCG.”