Marico Reports Higher-Than-Expected Profit with 8.7% Increase in Q1

India’s Marico Ltd, which owns the popular Saffola and Parachute oil brands, announced a higher-than-expected profit increase for the first quarter of the financial year. On Monday, Marico reported an 8.7% rise in consolidated net profit, reaching 4.64 billion rupees ($55.4 million), slightly surpassing analysts’ forecasts.

This positive performance was attributed to sustained demand for its products, and the company indicated that its earnings are projected to grow further this year.

The company also saw a significant boost in its total revenue from operations, which rose by 6.7% to 26.43 billion rupees. This marked the most substantial revenue growth in over two years. Revenue from India, which constitutes 75% of Marico’s total revenue, increased by 7.4%, reflecting strong domestic performance. The rise in revenue was supported by increased sales volumes in both cooking and hair oils.

Marico’s Parachute hair oil benefited from higher pricing, while its Saffola cooking oil business saw advantages from price reductions. The company noted that sales volumes contributed to the revenue growth and anticipated that this trend would continue, including in its international markets.

Marico’s investor update suggested that both revenue and earnings are expected to increase throughout the financial year.

Following the announcement, Marico’s shares rose by 2.1% to 676.6 rupees, marking a 23% gain for the year so far. In the broader context of the industry, branded cooking oil producers in India, such as Adani Wilmar and Patanjali Foods, have reported higher profits due to stable edible oil prices.

These companies also experienced robust financial results in the previous month, benefiting from the stability in oil prices.

In contrast, other consumer goods makers have reported mixed results. Hindustan Unilever, known for Dove soap, saw increased earnings due to higher demand following price cuts. Conversely, Nestle India, which produces KitKat, faced its slowest growth in eight years as price hikes led to decreased consumer spending.