India's Marico misses profit estimates as costs overshadow price-led growth

AWL Agri Business

31/01/2025 09:21

Jan 31 (Reuters) - Indian consumer goods maker Marico
 MRCO.NS  reported a smaller-than-expected quarterly profit on
Friday, as higher raw material costs and marketing spends
overshadowed price increases-led growth.
    Rising prices of raw materials including copra and vegetable
oil weighed on the Parachute coconut oil maker's profits, while
the company also faces intense competition and continues to
spend heavily on marketing and advertising.
    Marico's expenses rose 17.7% to 23.18 billion rupees
($267.54 million) during the third quarter ended Dec. 31.
    Consolidated net profit stood at 3.99 billion rupees ($46.05
million), compared to 3.83 billion rupees a year earlier.
Analysts, on average, were expecting a profit of 4.02 billion
rupees, according to data compiled by LSEG.
    Revenue, however, came in at 27.94 billion rupees, up 15.4%
from a year earlier, supported by improving demand in rural
areas and product price increases.
    Marico said it would raise prices of its products further to
make up for an expected "firmness" in commodity prices, noting
copra prices, up 38% this financial year, were ahead of its
forecasts.
    It also said its revenue would increase in the double-digit
percentage range in the medium term by increasing its market
share across its portfolio of brands.
    Meanwhile, Dove soap maker and industry bellwether Hindustan
Unilever  HLL.NS  reported below-expectation results last week
and forecast margin pressures ahead.
    
($1 = 86.6400 Indian rupees)

 (Reporting by Praveen Paramasivam in Chennai; Editing by
Shailesh Kuber)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))