Fast-moving consumer goods (FMCG) major Marico on Monday reported a consolidated net profit of Rs 318 crore for the quarter ended March 31, 2024 (Q4FY24). This was a 5.3% increase from the Rs 302 crore profit reported in the corresponding period last year, marginally below street estimates of Rs 325 crore for the period.
The company reported consolidated revenue from operations at Rs 2,278 crore in Q4, up 1.7% year-on-year (Y-o-Y) from Rs 2,240 crore reported last year. Bloomberg consensus estimates had pegged Q4 revenue at Rs 2,289 crore.
Volume growth at 3% was in line with street estimates of around 2-3% for the period. Marico had indicated in its quarterly update last month that consolidated revenue in Q4 had grown in low single digits, moving back into positive territory after three quarters in FY24.
On Monday, Marico said that the domestic operating environment in Q4 was akin to the preceding quarters of the year. While domestic revenue at Rs 1,680 crore was flat versus the year-ago period, analysts said that it was in part due to pricing correction taken in key portfolios during the March quarter. Marico’s domestic business contributes around 74-75% to the consolidated topline.
The company said that its international business, which gives the firm around 25-26% of its overall revenue, delivered strong broad-based growth led by Bangladesh recovering quickly after facing headwinds in the preceding quarter and sustained momentum in most of the other markets.
The company also said that offtakes in its domestic business remained healthy with 75% of the business either gaining or sustaining market share and 100% of the business either gaining or sustaining penetration, both on a MAT basis.
“We expect a gradually improving growth trajectory in the core categories through ongoing initiatives to enhance general trade channel partner profitability and transformative expansion in direct reach via Project SETU. We are aggressively driving the profitable scale-up of foods and digital-first brands. And aim to deliver healthy revenue-led earnings growth in the near and medium term, aided by the positively evolving operating environment,” Saugata Gupta, MD & CEO, Marico, said.
Earnings before interest, tax, depreciation, and amortisation (Ebitda) for Q4 stood at Rs 442 crore, rising 12.5% year-on-year. The Ebitda margin stood at 19.4% in Q4 versus 17.5% in the year-ago period, up 190 basis points.
For the full-year ended March 31, 2024 (FY24), the FMCG major reported a consolidated profit of Rs 1,481 crore, rising 13.7% from Rs 1,302 crore last year. Revenue from operations, on the other hand, fell by one per cent to Rs 9,653 crore, compared to Rs 9,764 crore reported at the end of FY23.
Ebitda for FY24 stood at Rs 2026 crore versus Rs 1,810 crore last year, rising 12% year-on-year. Ebitda margin stood at 21% versus 18.5% a year ago, up 245 basis points. Shares of Marico ended 2.75% higher on the BSE on Monday to Rs 531.05 a piece.