Marico profit rises 5.2% to Rs 406 crore in Q3, revenue up 15.3% to Rs 2,794 crore

Marico Q3 Results: Homegrown FMCG major Marico Ltd on Friday reported an increase of 5.18 per cent in consolidated net profit to Rs 406 crore for the December quarter ended 2024, in which the Mariwala-led firm reported a volume growth from the domestic market and good performance from its International business.

It had posted a net profit of Rs 386 crore in the October-December quarter a year ago, according to a regulatory filing by Marico.

Marico's consolidated revenue from operations was up 15.35 per cent to Rs 2,794 crore during the quarter under review. It was at Rs 2,422 crore a year ago.

The growth in revenue was led "with underlying volume growth of 6 per cent in the India business and constant currency growth of 16 per cent in the international business," said Marico in its earning statement.

However, its gross margin "contracted by 180 bps Y-o-Y, primarily impacted by the rising trend in copra and vegetable oil prices," which was only partly offset by pricing interventions in key portfolios.

The A&P spends of Marico, which owns popular brands like Saffola, Parachute, Livon, etc were up 19 per cent Y-o-Y.

"Consequently, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was up 4 per cent, as EBITDA margin stood at 19.1 per cent, down 210 bps," it said Total expenses of Marico, increased 17.66 per cent in the December quarter to Rs 2,318 crore.

Marico's total income, which includes other income, was up 15.05 per cent to Rs 2,836 crore in the December quarter.

Commenting on the results MD & CEO Saugata Gupta said, "We have delivered a considerably resilient performance in this quarter with the highest underlying volume and revenue growth in 13 quarters." "The core domestic portfolios have held firm amidst inflationary conditions and witnessed market share and penetration gains, with the accelerated scale-up in Foods and Digital-first brands visibly advancing the diversification agenda," he said.

In the December quarter, the domestic revenue of Marico was up 17.17 per cent to Rs 2,101 crore. This growth was led by price hikes in core portfolios in response to the sharp rise in input costs, it added.

"The India business posted an uptick in underlying volume growth on a sequential basis, which was underpinned by a resilient performance across the core portfolios and scale-up of the new businesses," said Marico.

During the quarter, offtake growth remained strong as over 90 per cent of the business either gained or sustained market share and 80 per cent of the portfolio either gained or sustained penetration.

Among channels, MT and E-commerce, including Quick Commerce continued to lead with high double-digit volume growth, while the traditional GT channel which mainly comprises neighbourhood kirana shops was flattish.

Marico's revenue from the international market was up 10.17 per cent to Rs 693 crore.
Its Bangladesh business posted 20 per cent CCG (Constant Currency growth), amidst a challenging macro environment.

"The fundamentals and medium-term growth construct of the business remain intact," it said.

Its MENA (Middle East and North Africa) delivered 35 per cent CCG with broad-based growth in the Gulf region and Egypt. South Africa registered 17 per cent CCG with both the Hair Care and Health Care franchises faring well.

While South East Asia business had a soft quarter, Marico added.

In the India business, Marico's Parachute business registered 3 per cent volume growth and recorded 15 per cent revenue growth, aided by pricing hikes taken during this year.

While its Saffola Edible Oils delivered a low-single digit volume growth amidst the sharp rise in vegetable oil prices. The brand posted 24 per cent revenue growth, led by price hikes taken over the last few months.

Value-Added Hair Oils business, which includes Hair & Care, Nihar and Coco Soul - declined by 2 per cent in value terms.

Its foods business posted 31 per cent value growth YoY, nearing Rs 1,000 crore Annual run rate (ARR) in Q3.

"Saffola Oats delivered double-digit growth, while the newer franchises fared healthily. True Elements and the plant-based nutrition portfolio of Plix maintained their accelerated growth momentum," it said.

Premium Personal Care also continued its strong run during the quarter. The Digital-first portfolio, comprising Beardo, Just Herbs and the personal care portfolio of Plix, scaled ahead of expectations to reach Rs 600 crore in ARR in Q3.

"The composite revenue share of Foods and Premium Personal Care (including Digital-first brands) in the domestic business stood at 21 per cent in 9MFY25 (April-December)," said Marico.

Over the outlook, Marico said it expects gradually improving growth trends in the core categories of its domestic business, amidst the stable macro backdrop "We also continue to draw confidence from healthy offtakes, penetration and market share gains in our key portfolios," said Marico adding in the medium term, it aims to deliver double-digit revenue growth.

Meanwhile, in a separate filing, Marico said its board in a meeting held on Friday declared an interim dividend of 350 per cent, which is Rs 3.50 per equity share of Re 1 each for the Financial Year 2024-25.

Shares of Marico Ltd on Friday were trading at Rs 671.10 per scrip on the BSE, down 0.19 per cent from the previous close.