marico Q4 results: Marico Q4 results: Cons NPAT up 20% y/y to Rs 302 billion, revenue growth falters

Marico reported a 20.3% year-on-year (YoY) increase in consolidated net profit for the quarter ended March to Rs 302 crore, despite slow revenue growth. Operating revenue increased slightly by 4% year-on-year to Rs 2,240 crore.

The company reported earnings after the market closed. Shares ended down 0.7% to Rs 493.6 on the National Stock Exchange.

Consolidated operating profit for the quarter increased 14% year-on-year to Rs 393 billion and profit margin increased 153 basis points to 17.5%.

The owner of the ‘Parachute’ oil brand has seen a 5% year-on-year growth in output for its domestic business. Volume growth outstripped the industry’s 3% growth for the quarter.

For fiscal year 2023, Marico reported a 6.3% increase in consolidated net profit year-on-year to Rs 1.302 billion and a nearly 3% growth in revenue to Rs 9,764 billion.

However, Marico is upbeat about its operating results for the current financial year amid recovering domestic volumes and revenue growth trajectory.

Marico’s international business reported 13% year-over-year revenue growth in constant currency for 2023 compared with 16% growth a year ago. It is also confident to maintain double-digit growth in fiscal year 2024.

cost calculation

Material costs account for more than 50% of Marico’s total costs. However, input costs as a percentage of sales fell in the March quarter compared with the December quarter. It stood at 52.6% in Q4 compared to 55% in Q3.

However, spending on advertising and promotions as a percentage of revenue rose to 9.4% from 8.9% in Q3.

The ratio of other expenses to revenue also increased to 12.9% in Q4 from 11.1% in Q3.

Indian performance

Marico’s domestic sales increased only 2% y/y to Rs 1,683 crore and a 5% decrease in volume growth due to falling prices of Parachute coconut oil and Saffola cooking oil due to lower input prices.

“However, the consistent focus on strengthening brand equity across portfolios and performance has translated into 90% of portfolios either gaining or maintaining market share,” the company said. in a press release.

Parachute Rigids posted volume growth of 9% amid a normal transition to brands as stability in consumer prices and copra prices prevailed throughout the quarter.

Value-added hair oils ended the year on a positive note with value growth of 13% in Q4, driven by volume.

Saffola cooking oil saw a single-digit average volume decline on a sustained high volume basis during last year’s outbreak of the Omicron variant of COVID-19. However, the franchise continued to see healthy growth during the quarter.

“For our domestic business, we will drive volume-led growth and increase market share across our portfolios, supported by distribution expansion, integrated cost control and more. pole and fully invested.
in market development and brand building,” the company said.

The company expects revenue growth to pick up gradually as pricing interventions come into effect in the first half of fiscal 2024.

Iinternational bussiness
International business had another stellar quarter, as it delivered continued currency growth of 16%, weathering global macroeconomic uncertainty and headwinds of devaluation. currencies in several geographic regions.

Each region has strong performance results, reflecting the hidden strength of businesses.

In Bangladesh, the company expects constant double-digit currency growth over the medium term, based on its competitive position and significant growth gap in the market.

In Vietnam, the expansion into female personal care is expected to be profitable for the business in the medium term.

In South Africa, the company is expected to defend its core franchise of ethnic hair care and wellness in the medium term.

“International business has consistently delivered solid performance despite macroeconomic challenges in several geographies. We are confident to maintain double-digit growth in 2024,” said Marico.


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