Marico expects domestic business growth to pick up and sector volume trends to maintain improving trajectory

Marico recorded a profit of ₹474 crore in the quarter ending June 2024 (April-June), the consumer goods major said on Monday, August 5. Marico’s net profit exceeded the CNBC-TV18 poll estimate of ₹474 crore ₹462 crore

Marico’s revenue for the quarter was ₹2,643 crore, down 1.2% from CNBC-TV18’s estimate of ₹2,675 crore but more than ₹ 2,477 crore was recorded in the first quarter of FY24.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to ₹626 crore, almost a per cent lower than the CNBC-TV18 poll estimate ₹631 crore but exceeding ₹574 crore in the June quarter a year ago. The margin rose 50 basis points from the same period last year to 23.7%. This was 20 basis points above the survey estimate.

Marico saw a gradual improvement in volume trends across the board. Domestic volume growth was 4% in the quarter, while consolidated revenue growth was up 7% to ₹1,962 crore.

“More than 90% of domestic business either gained or maintained market share and penetration on a MAT basis.”

The company increased its analytical and promotional spending by 13% year-over-year during the quarter.

Parachute Coconut Oil and Saffola Oils saw positive momentum. Parachute Coconut Oil saw 2% volume growth, while Saffola saw mid-single-digit volume growth. The mid- and premium value-added hair oils segments performed relatively better.

Marico’s strong business prospects pushed its shares up nearly 1.5%. expects sector volume trends to maintain an improving trajectory. Similarly, A gradual recovery in growth is also expected in the main categories of domestic activity.

Marico aims to grow its food and beverage business at a compound annual growth rate of over 20-25% to double fiscal 2024 revenue in fiscal 2027. a consumer goods companyintends to maintain double-digit steady currency growth in international business over the medium term.

The share of domestic revenue from food and personal care will increase to 25% by fiscal 2027. FMGC is on track to achieve double-digit EBITDA margin at Beardo this year, according to Marico. Marico also expects consolidated revenue growth to trend higher during the year.

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