Marico Q4 Net Profit Up 18.7% At Rs 305 Cr | Companies News
New Delhi: Homegrown FMCG major Marico Ltd on Friday reported an 18.68 per cent increase in its consolidated net profit to Rs 305 crore for the fourth quarter ended March 2023, driven by single-digit volume growth and moderation in key commodity prices. The Harsh Mariwala-led company had posted a net profit of Rs 257 crore in the January-March quarter a year ago, Marico said in a regulatory filing. Its revenue from operations rose 3.65 per cent to Rs 2,240 crore during the quarter under review from Rs 2,161 crore a year ago.
“During the quarter, the prospects for a sustained recovery in consumption trends strengthened as the sector recorded low single-digit volume growth in Q4 after five consecutive quarters of volume decline. Moderation in input prices and retail inflation should aid the improving trend in the coming year,” said Marico in its earning statement.
Marico — which owns popular brands like Saffola, Parachute, Livon etc — said its total revenue in the March quarter inched up 5.62 per cent to Rs 2,308 crore. Over demand trends, Marico said urban consumption has remained steady in the March quarter though signs of visible buoyancy are awaited. The rural sector has most likely bottomed out as the declining trend reversed in this quarter.
“From a category perspective, Packaged Foods, which have been relatively resilient through the year, continued to drive growth for the sector. We expect the gradual pickup in overall consumption should accelerate the pace of growth in Packaged Foods,” the company said.
Its Home and Personal Care category remained muted while notably moving into positive territory after six quarters, it added. Marico’s total expenses rose 2.36 per cent to Rs 1,907 crore in Q4 FY23.
The company’s revenue from the domestic market was up 1.75 per cent at Rs 1,683 crore in Q4 FY23. It was Rs 1,654 crore a year ago. “The India business continued to better the performance of the preceding quarter with an underlying volume growth of 5 per cent,” it said. A consistent focus on strengthening brand equity across portfolios and execution translated into 90 per cent of the portfolio either gaining or sustaining market shares and 85 per cent of the portfolio either gaining or sustaining penetration, both on MAT (Moving Annual Total (MAT) basis.
“Among the sales channels, General Trade declined in low single digits, while MT and Ecommerce grew in double digits. Given the recurring trend, MT and E-com contribution to domestic sales went up to 29 per cent in FY23,” it said.
Its Parachute Rigids posted 9 per cent volume growth, while Saffola Edible Oils witnessed a mid-single digit volume decline on a high volume base sustained during the outbreak of the Omicron variant of COVID-19 last year.
“Value Added Hair Oils ended the year on a rather positive note with value growth of 13 per cent in Q4, driven by volumes,” it added. Its Foods segment grew 18 per cent in value terms to about Rs 600 crore revenue mark in FY23.
“We are well on course to close above the Rs 850 crore revenue mark in FY24,” it said. Marico’s revenue from the international business was up 9.86 per cent at Rs 557 crore against Rs 507 crore a year ago. Its market in Bangladesh clocked 9 per cent growth on constant currency as both core and newer portfolios performed well. Vietnam grew by 16 per cent in constant currency terms with healthy traction in both the HPC and food franchises.
“MENA grew by 37 per cent, while South Africa grew by 21 per cent in constant currency terms,” it said. For the financial year ended March 2023, Marico’s net profit rose 5.33 per cent to Rs 1,322 crore. It was Rs 1,255 crore in FY22. Its consolidated revenue from operations in FY23 increased 2.64 per cent to Rs 9,764 crore from Rs 9,512 crore a year ago.
Over the outlook, Marico said that in the near term, it will drive volume-led growth and market share gains across its portfolios in the domestic business, aided by distribution expansion, aggressive cost controls and adequate investment in market development and brand building.
“We expect a gradual uptick in revenue growth as pricing interventions come into the base in the first half of FY24,” it said Shares of Marico Ltd on Friday settled at Rs 493.25 apiece on BSE, down 0.80 per cent from the previous close.
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