A Detailed Look
Marico Ltd., a leading Indian personal care company, reported a 4.9% increase in its profit after tax (PAT) for the January-March quarter of FY2024. The company's PAT grew to Rs 320 crore during the quarter, compared to Rs 305 crore in the corresponding quarter of the previous year.
While revenue from operations remained flat at Rs 2,278 crore, it still represented a 1.7% growth over the Rs 2,240 crore reported in the March 2023 quarter. The company's India business, which contributes roughly 74% to its top-line, posted a volume growth of 3% year-on-year (yoy).
Premium and urban-centric segments outperformed rural and mass segments.
Alternate channels gained salience compared to General Trade.
Gross margin expanded by 420 basis points yoy due to softer input costs and favorable portfolio mix.
Advertisement & promotional spends increased by 8% yoy.
EBITDA margin improved to 19.4%, expanding by 186 basis points over the same quarter of the previous year.
Flagship haircare brand Parachute registered 2% volume growth.
Value-added hair oils declined 7% in value terms.
Saffola edible oils registered mid-single digit volume growth.
Foods business logged 24% value growth yoy.
Marico reported a 13.6% rise in its net profit for FY2024. Its PAT for the year stood at Rs 1,502 crore, up from Rs 1,322 crore in FY2023. However, operating revenue failed to grow, remaining at Rs 9,653 crore, a 1.1% decrease from the previous year's Rs 9,764 crore.
Significant decline in cost of raw materials (15.3%) due to cooling off of agri-commodity prices.
Highest-ever annual operating margin.
Improved growth trajectory in core categories.
Transformative expansion in direct reach via Project SETU.
Aggressive scale-up of Foods and Digital-first brands.
Regained momentum in Bangladesh business.
Ramped-up MENA and South Africa businesses.
Marico's management expects a healthy revenue-led earnings growth in the near and medium term, supported by the positively evolving operating environment. They are aiming to deliver this growth through ongoing initiatives to enhance GT channel partner profitability, transformative expansion in direct reach, and aggressive scale-up of Foods and Digital-first brands. Additionally, the company plans to focus on the profitable growth of its international business, particularly in Bangladesh, MENA, and South Africa.