Published
Nov 4, 2022
Download
Download the article
Print
Text size

Marico sees profit drop 3% in FY23 Q2

Published
Nov 4, 2022

Marico saw its profits drop by 3% in the second quarter of the 2023 financial year. The personal care and fast moving consumer goods business felt the effects of continued inflation, which put pressure on rural demand. 

Marico's brands include Set Wet, a hair brand for men - Set Wet-Facebook


The business’ year-on-year profit drop caused it to record net profits of Rs 3.01 billion. This total came in under previous estimates of Rs 3.2 billion, according to Refinitiv IBES, ET Retail reported.  
 
Marico’s expenses had increased during the second quarter by 4% year-on-year and revenue had risen by 3% to total Rs 24.96 billion. The business attributed much of its revenue growth to international sales. 

Inflation has continued to show few signs of abating and has reduced the spending power of consumers, especially in rural areas. This has led many shoppers to opt for cheaper, unbranded FMCG products, as opposed to mid-range goods manufactured by businesses such as Marico. 
 
“The divergence in rural and urban growth grew starker with the former reeling under persistent inflationary and liquidity pressures,” said Marico in a statement, Reuters reported. Despite an underwhelming second quarter, the business has a more positive outlook for the third quarter, thanks to softening commodity prices and the winter festive season, a time when consumers spend more money. 
 
 

Copyright © 2024 FashionNetwork.com All rights reserved.