Rural market continues to struggle in Q4, urban and premium categories see sustained growth

According to Marico, the Fast Moving Consumer Goods (FMCG) industry saw a slowdown in rural demand in the December quarter due to high retail inflation, while urban and premium categories maintained steady growth.

Overall, the sector experienced an improvement in demand, particularly in categories that benefited from the festive season and the onset of winter.

Marico’s domestic business saw a slight increase in volume growth compared to the previous quarter, and the company reported stability in key input prices and consumer pricing across its key franchises. Marico expects its operating margins to improve both sequentially and year-on-year.

However, the company noted that due to lower revenue growth, it expects modest growth in operating profit.

The international business of Marico continued to see healthy growth with high single-digit constant currency growth, despite facing challenges such as currency depreciation and high inflation in key markets.