Marico expects its gross margins to improve by 200-250 bps in FY24, helped by cooling commodity inflation and portfolio mix normalising favourably. The company expects a «volume-led growth» in the domestic market and gains in market share by most of its products and increase spending in advertising & promotion (A&P), said Marico in its latest annual report. «On the domestic business, we will drive volume-led growth and market share gains across our portfolios, aided by distribution expansion, aggressive cost controls and adequate investment in market development and brand building,» said Marico, which owns Saffola, Parachute, Hair & Care, among other brands.
On the rural market, Marico said it will «keenly monitor» growth and is hopeful of a recovery in demand, considering a good harvest season, forecast of a normal monsoon and increase in government spending. On the input cost front, key input materials, other than crude oil derivatives, have stabilised at lower levels, it added. «We expect our gross margins to improve by 200-250 bps in FY24, given the cooling off in commodity inflation and portfolio mix normalising favourably.
A&P investments will continue to be a key thrust for growth,» it said. «Owing to these factors, consolidated operating margin should move up by at least 100 bps on a year-on-year basis in FY24,» the company said. Marico further said it is targeting to deliver 13-15 per cent revenue growth in the medium-term on the back of 8-10 per cent domestic volume growth and double-digit constant currency growth in the international business.
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