Fast-moving consumer goods (FMCG) major Marico expects its domestic business to post a marginal increase in underlying volume growth on a sequential basis during the April-June period (Q1FY25), it said on Friday. said in the quarterly update. The update was released after market hours. Shares of Marco closed 1.23 percent higher at Rs 615.30 on the BSE on Friday.

The Mumbai-based company said the modest increase in volumes in Q1 came amid adjustments in distributor stock levels to boost return on investment. Mariko It also said it was destocking some wholesale channels in Q1 to ensure expansion of direct access under its Project Situ program.

Marico expects its overall revenue growth to move upward in Q1, touching the high single digits, despite price cuts at Saffola. During the year, its overall revenue growth is likely to inch higher due to improved pace of domestic volume growth and higher receipts due to a favorable pricing cycle in key domestic divisions.

FMCG The major also expects gross margin to increase on a year-on-year basis due to a favorable portfolio mix. Among key inputs, copra prices remained steady, in line with forecasts, while edible oil and crude oil Derivatives have been range bound.

“We continue to invest appropriately in brand building in line with our strategic intent to consistently strengthen the long-term equity of both core and new franchisees,” the company said.

In constant currency terms, Marico’s international business is likely to deliver double-digit growth, driven by resilient and broad-based growth across all markets.

Going forward, Marico expects its operating profit to slightly outpace revenue resulting in a modest increase in operating margin on a year-over-year basis.

The company also said it recently announced a collaboration with dermatological solutions provider, Kaya.An additional growth driver for its premium personal care business will be marketing of its personal care products outside of its clinics. This collaboration will accelerate Marico’s India portfolio diversification agenda. business, he added.

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