According to a BSE filing, Marico, a leading FMCG company, recorded a significant increase in its consolidated net profit for the first quarter ending June 30, 2023. The company’s net profit rose by 15.6 per cent, reaching INR 436 crore, compared to INR 377 crore in the corresponding quarter of the previous fiscal year.
Nevertheless, the company experienced a minor decrease in total income, amounting to INR 2,523 crore during Q1 FY24, in contrast to INR 2,575 crore recorded in Q1 FY23.
According to the regulatory filing, Marico’s total expenses declined to INR 1,956 crore in Q1 FY24, showing a contrast to the corresponding quarter of the previous fiscal, where expenses amounted to INR 2,076 crore.
In Q1 FY24, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached INR 574 crore, indicating a 9 percent increase from INR 528 crore reported in Q1 FY23. Additionally, the EBITDA margin for Q1 FY24 improved to 23.2 percent compared to 20.6 percent in Q1 FY23.
Throughout the quarter, the FMCG sector maintained its optimistic outlook, consistent with the previous quarter. However, as expected, noticeable signs of significant growth in rural areas on a sequential basis were not evident.
According to the company’s statement, the growth primarily stemmed from urban areas, while the rural markets saw growth from a smaller base. In terms of product categories, packaged foods sustained their positive performance, while beauty and personal care products closely followed the trajectory of rural market growth.
In its quarterly update, the company expressed optimism about a gradual recovery in volume growth, mainly driven by the rural sector, thanks to the ongoing reduction in commodity and retail inflation. However, the company also highlighted the importance of closely monitoring the distribution of rainfall and the impact of recent erratic weather patterns on the agricultural cycle. These factors could significantly influence rural incomes, making them critical to observe for future developments.
In the fiscal year 2022-23, the FMCG major achieved a turnover of INR 97.6 billion ($1.2 billion) from its products sold in India as well as selected markets in Asia and Africa.