Marico Limited, a leading name in the Fast-Moving Consumer Goods (FMCG) industry, reported a robust financial performance on Monday. The company posted a notable 15.9% increase in its consolidated net profit, reaching INR 386 crore for the third quarter (Q3) ending on December 31, 2023. This marks a significant uptick from the INR 333 crore net profit recorded during the same period in the preceding fiscal year, as indicated in the company’s filing with the Bombay Stock Exchange (BSE).
Nevertheless, the revenue from operations experienced a decline of 1.94%, falling to INR 2,422 crore in the current quarter from INR 2,470 crore reported a year ago.
As per the regulatory filing, the total expenses for the company in the December quarter amounted to INR 1,970 crore, reflecting a decrease of 4.7%.
Saugata Gupta, MD & CEO of Marico Limited, said, “We have delivered a competitive performance in a volatile operating environment. In the domestic business, we witnessed signs of improvement in the core portfolios and expect the steps we have initiated to fundamentally improve business prospects of the GT channel to aid the same.”
Gupta further said, “The portfolio diversification through Foods and Premium Personal Care continues to progress well. The international business has been resilient amid transient headwinds and we anticipate a healthy growth momentum ahead. We are on course to deliver our highest ever operating margin this year and expect to maintain a resilient margin profile in the quarters ahead.”
In the Q3 FY24 results update, Marico highlighted the continued robust growth of its foods segment, registering an 18% YoY increase in value. Saffola Oats maintained its leadership position, and Honey and Soya Chunks exhibited growth as anticipated. Positive traction was observed in Peanut Butter, Mayo, and Munchiez. Furthermore, True Elements and Plix are making notable strides in their respective categories.
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Parachute Rigids achieved a 3% increase in volume growth, with the transition from loose to branded products gaining momentum. The 4-year Compound Annual Growth Rate (CAGR) for volume growth stood at 3%.
The company said, “During the quarter, the franchise gained ~40 bps in market share on MAT basis. We expect volume growth to continue its gradually improving trajectory as input costs exhibit an upward bias amid stable consumer pricing.”
Furthermore, it was mentioned that value-added hair oils saw a 3% growth in value, even in the face of slower rural demand. The 4-year Compound Annual Growth Rate (CAGR) for its value growth stood at 6%.
Marico’s Saffola edible oils recorded a mid-single-digit decline in volume, mainly due to a high base and prolonged sluggishness in trade sentiment, resulting in lower year-on-year inventory levels, despite healthy offtakes. The revenue decline was in the mid-twenties on a year-on-year basis, reflecting pricing corrections over the past 12 months that were yet to be factored into the base.
During the quarter, the premium personal care category sustained a strong double-digit growth trajectory. Its digital-first portfolio has clocked an exit ARR of over INR 400 crore in Q3. The composite share of foods and premium personal care was at 20 per cent of domestic revenues in Q3.
In the Q3 results update, Marico’s international business achieved mid-single digit constant currency growth, with a temporary slowdown in Bangladesh due to transient macroeconomic challenges. However, other regions demonstrated resilient performance during the same period.