NEW DELHI: FMCG giant Marico expects demand and margin trends to improve towards the second half of next year. The company in its latest annual report said that the consolidated operating margin should be in the range of 18-19% in FY23.
“In the domestic business, while the near-term demand outlook is uncertain, we are confident of staying well-ahead of market growth and will continue to maintain a sharp focus on driving penetration and market share gains across our portfolios aided by distribution expansion, aggressive cost controls, and sufficient investment in market development and brand building,” the company said.
Marico is hopeful of a rural recovery in demand in light of the good harvest season, normal monsoon forecast and government spending. In the medium term, the company said, it will aim to maintain a consolidated operating margin above the threshold of 19%.
“We hold our medium-term aspiration to deliver 13-15% revenue growth on the back of 8-10% domestic volume growth in the domestic business and double-digit constant currency growth in the international business.” However, the company notes that unexpected changes in commodity prices and supply could impact business margins and ability to service demand.