Marico's domestic biz reports modest volume rise in Q1; margins improve

Fast-moving consumer goods maker Marico on Friday said its domestic business posted a "modest uptick" in volume growth in the first quarter on a sequential basis and expects gross margin to expand year on year.

The overall demand trends in the first quarter continued to exhibit gradual improvement on the expected lines, said Marico, which owns brands such as Saffola, Parachute, Hair & Care, Nihar and Livon, among others.

The company recorded volume growth post adjustments in distributor stock levels and a certain degree of wholesale channel destocking to ensure smoother direct reach expansion, said Marico in its quarterly update for the first quarter.

Key brands such as "Parachute Coconut Oil posted low single-digit volume growth in this quarter, but is likely to pick up visibly through the rest of the year given the consistently healthy trends in offtake growth", said Marico.

While Saffola delivered mid-single-digit volume growth amidst marked stability in input and consumer ...