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Impacted by a rise in input prices, FMCG maker Marico Ltd posted a 4.17 per cent increase in consolidated net profit at ₹399 crore with revenue growth of 15.35 per cent in Q3.
The company reported an EBITDA margin of 19.1 per cent with domestic volume growth of 6 per cent.
The domestic revenue during the quarter was up by 17 per cent at ₹2,101 crore led by price hikes due to high input prices. The company stated that the India business delivered the strongest growth in 13 quarters. Urban demand remained stable while rural sustained 2x growth of urban year-on-year basis.
| December 2024 | December 2023 | % | September 2024 | % | |
|---|---|---|---|---|---|
| Profit& Loss | 399 crore | 383 crore | 4.17% | 423 crore | - 5.67% |
| Revenue | 2,794 crore | 2,422 crore | 15.35% | 2,664 | 4.87% |
Marico declared an interim dividend of ₹3.50 per share on its paid-up equity share capital of ₹129.5 crore.
The company expects gradual improvement in growth trends in the near term amidst a stable macro backdrop in core categories of the domestic business through initiatives to support general trade partners.
A 3 per cent volume growth was reported by the company in the domestic business while the international business saw a 9 per cent constant currency growth. The company stated that price cuts in key domestic portfolios and currency headwinds in international markets subdue revenue growth.
Parachute Rigids saw a 3 per cent volume decline. Value-added hair oil declined 2 per cent in value terms while Saffola Edible Oils registered a low-single-digit volume growth amidst a sharp increase in vegetable oil prices.
The food segment saw a 31 per cent value growth year-on-year, nearing ₹1,000 crore ARR.
Marico stated that the company’s food and premium personal care revenue share stood at 21 per cent. The digital-first portfolio comprising Beardo, Just Herbs and Plix reached ₹600 crore in ARR in Q3.
In international business, Bangladesh clocked 20 per cent constant currency growth, Vietnam registered 5 per cent with the impact of economic slowdown while MENA delivered 35 per cent and South Africa registered 17 per cent for the quarter. The exports for the company saw a 15 per cent growth.
“The core domestic portfolios have held firm amidst inflationary conditions and witnessed market share and penetration gains, While the sharper-than-anticipated rise in input costs will have some transient impact on margins in the near term, we remain biased towards driving top quartile volume growth and double-digit revenue growth in the near and medium term,” said Saugata Gupta, MD & CEO of Marico Ltd.
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