Marico trades lower as Q1 revenue dips on fall in edible oil prices
Analysts, however, cheer margin expansion. In the June quarter, Marico’s domestic volumes grew in low-single digits, with a minor drop in Parachute coconut oil and low double-digit growth in Saffola oils.
Marico share price opened lower on July 6, after the company said in its Q1 FY24 update that consolidated revenue declined in low-single digits on a year-on-year basis.
During the quarter, Marico’s domestic business was affected by significant trade destocking in Saffola edible oils in reaction to sharply falling vegetable oil prices.
“The business was also affected by channel inventory adjustments in core portfolios triggered by the last leg of trade scheme rationalisation for correction of the historical Q1 revenue skew,” the company said in an exchange filing.
At 9:40 am, the Marico stock was quoting at Rs 534 on the NSE, down 0.84 percent from the previous close.
