FMCG giant Marico announced a 17.2 percent increase in its consolidated net profit for the second quarter (Q2) ending on September 30, 2023. The company’s consolidated net profit for this quarter stood at INR 360 crore, as reported in a BSE filing, marking significant growth compared to the INR 307 crore in consolidated net profit from the corresponding period in the previous fiscal year.
Nonetheless, the company experienced a marginal decline in its revenue from operations during Q2 FY24, with figures totaling INR 2,476 crore, in contrast to the INR 2,496 crore in revenue from operations recorded in Q2 FY23.
During Q2 FY24, the company’s total expenses decreased to INR 2,038 crore, as reported in the regulatory filing. This marks a reduction from the INR 2,115 crore in total expenses incurred during the corresponding period in the previous fiscal year.
Throughout the quarter, demand patterns in the domestic FMCG sector remained largely consistent with the previous quarter. The company noted that although urban sentiment showed sequential improvement, challenges such as increased food inflation and uneven rainfall distribution contributed to a slower-than-expected recovery in rural demand.
In an official statement, the company mentioned that packaged foods, owing to its strong urban presence, sustained a robust growth trajectory and consistently outperformed mass home and personal care categories.
Marico maintains a positive outlook for the gradual recovery of sectoral volume growth, largely due to well-managed commodity inflation and the implementation of price reductions across various categories. This optimistic outlook is further supported by the stable retail inflation, the onset of the festive season, and sustained government spending.
The company reported that a substantial portion of its portfolio exhibited positive trends in terms of customer demand, with approximately 85% of its business either gaining or maintaining market share and penetration.
Regarding the sales channels, the company shared that both Modern Trade (MT) and E-commerce experienced robust double-digit growth exceeding 20%. In contrast, the general trade sector witnessed a slight YoY decline in the low single digits.
Furthermore, Marico reported that its international business maintained a robust pace, achieving a constant currency growth rate of 13%, even in the face of challenging geopolitical situations and macroeconomic challenges in certain markets.
