FMCG major Marico reported a 6 percent fall in its net profit for first quarter (Q1FY22) ended June to Rs 365 crore as opposed to Rs 388 crore in the year-ago period. The maker of Parachute Oil and Saffola cooking oil registered at 31 percent climb in its revenue from operations during the quarter at Rs 2,525 crore; however, on a low base.
The company had posted Rs 1,925 crore revenue from operation in Q1FY21, as the country grappled with the first wave of the pandemic, disrupting operations of FMCG players.
A rise in inputs costs has been plaguing the company for some quarters now impacting its bottomline and it had increased the price of products such as Saffola cooking oil. However, the pricing interventions in the core portfolios could only partially alleviate the inflationary pressure, the company informed in its filing to the BSE.
“We definitely have seen some correction in copra prices which did not get reflected in the first quarter. We expect the prices of copra to be range bound going ahead, while for the entire year FY22 they will remain flat to marginally higher over the last year,” said Pawan Agrawal, CFO, Marico told Moneycontrol.
The edible oil prices, he said, have been volatile and will remain uncertain in the near term but might taper off in six months.
Marico’s domestic business delivered a turnover of Rs 1,992 crore, up 35 percent on a YoY basis, while its international business registered a turnover of Rs 533 crore, up 20 percent YoY basis with constant currency growth of 21 percent, the company informed.
Category-wise, Parachute Rigids grew by 12 percent in volumes in Q1FY22.
“The brand maintained its stronghold in the branded coconut oil market with the rigid packs gaining volume market share of 80 bps (MATJun’21),” the company informed.
The Saffola franchise, which includes products such as refined edible oil and foods, also had a robust quarter, the company said, and witnessed a 24 percent volume growth and 60 percent value growth in Q1.
“Saffola refined edible oils delivered double-digit volume growth for the seventh consecutive quarter. The brand gained 450 basis points in volume market share to 82 percent in the super premium refined edible oils category (MAT Jun’ 21),” informed the company.
Its recent forays in the food space such as Saffola Honey, Saffola Mealmaker Soya Chunks and Saffola Oodles, too, received encouraging response from the consumers.
As per the company, Saffola Honey’s market share in key modern trade chains has hit double-digits and consolidated above 25 percent in the e-commerce channel. Marico plans to launch smaller 100 gram packs of honey in general trade stores going ahead.