Marico confident of volume pickup as its inflation concerns subside

FMCG major Marico reported a volume decline "in mid-single digits" in its India business in the first quarter of the current financial year. The decline was attributed to tepid demand as rising retail inflation exerted pressure on the share of wallet. However, the company believes that the inflation pressure is abating now it expects a turnaround in the coming quarters.

Speaking to CNBC-TV18, Saugata Gupta, Managing Director & Chief Executive Officer at Marico, said that the worst is over as far as the inflationary situation is concerned.

“We had peak inflation in quarter one therefore we believe that things are improving,” he said.

Gupta sees a change in volume and expects the volumes to be positive this quarter, quarter two of FY23.

“We believe that it will be in the positive territory as things stand now,” he said adding that 18-19 percent margin over the full year is possible if the current trends continues.

On price reduction for Saffola, he mentioned that the company has taken significant price cuts in line with the decline in edible oil prices.

While sharing his outlook for the urban and rural demand, Gupta said that the worst is over for the rural sector and he expects to see a gradual recovery here on.

“We continue to see recovery in the discretionary part. Urban - including male grooming, serums some of the digital brands, the consumption story is very much intact. As far as rural is concerned, we expect to see gradual recovery. The worst is over a little bit,” he said.