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Informist, Monday, Aug. 4, 2025

 

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--Marico Apr-Jun consol net profit INR 5.04 bln 
--Analysts saw Marico Apr-Jun consol net profit at INR 4.89 bln 
--Marico Apr-Jun consol net profit INR 5.04 bln vs INR 4.64 bln year ago 
--Marico Apr-Jun consol revenue INR 32.59 bln vs INR 26.43 bln year ago 
--Marico Apr-Jun consol advt expense INR 2.99 bln vs INR 2.40 bln year ago 
--Marico Apr-Jun India revenue INR 24.95 bln vs INR 19.62 bln year ago 
--Marico Apr-Jun international revenue INR 7.64 bln vs INR 6.81 bln yr ago 
--Marico Apr-Jun consol EBITDA INR 6.55 bln vs INR 6.26 bln year ago 
--Marico Apr-Jun consol EBITDA margin 20.1% vs 23.7% year ago 
--Marico: See steady growth in core categories 
--Marico: See steady growth despite input cost headwinds in near term 
--Marico Apr-Jun domestic volume grew 9% on year 
--Marico Apr-Jun international ops grew 19% in constant currency 
--Marico: Parachute coconut oil volume fell 1% in Apr-Jun 
--Marico: Q1 parachute coconut oil volume up 1?justed for ml-age changes 
--Marico: Parachute coconut oil value grew 31% in Apr-Jun 
--Marico: Saffola edible oil value grew 28% in Apr-Jun 
--Marico: Saffola edible oil volume grew in mid-single digit in Apr-Jun 
--Marico: Value-added hair oils value grew 13% in Apr-Jun 
--Marico Apr-Jun Bangladesh ops grew 17% in constant currency 
--Marico Apr-Jun Vietnam ops grew 1% in constant currency terms 
--Marico Apr-Jun South Africa ops flat in constant currency 
--Marico: See India sales foods, premium personal care ops shr up 25% by FY27

 

By Arya S. Biju

 

MUMBAI – Fast moving consumer goods major Marico Ltd.'s revenue for the June quarter rose at its highest pace in four years led by volume growth in India, higher revenue from international business, and price hikes taken in core portfolios. However, a sharp rise in key commodities prices continued to exert pressure on the company's margins for the latest quarter. The company reported a high-single digit on-year rise in its bottom line for the quarter, similar to the 8.7% on-year growth reported in the year-ago quarter. The consumer goods company managed to beat analysts estimate for both the top line and the bottom line.

 

The company's consolidated net profit for the quarter rose 8.6% on year and nearly 47% on quarter to INR 5.04 billion, beating analysts estimates of INR 4.89 billion. Its consolidated revenue for the quarter rose over 23% on year and over 19% on quarter to INR 32.59 billion. This was also higher than the INR 32.12 billion estimated by the Street. 

 

Shares of the company, which traded slightly higher before the earnings announcement fell for a short period and later rose to their intraday high of INR 733.90, up 3.2% from the previous close. At 1444 IST, shares of the company traded 2.4% higher at INR 728.10 on the National Stock Exchange.  

 

The company's consolidated revenue from India business rose over 27% on year to INR 24.95 billion, led by a 9% on-year rise in domestic volumes during the quarter. "The India business continued to post sequential improvement in underlying volume growth, driven by positive trends in the core franchises and accelerated scale up of new businesses," Marico said in a post-earnings presentation. The company's revenue from India business was also aided by price hikes taken in core portfolios in response to sharp rise in input costs. 

 

Revenue from Marico's international business grew over 12% on year to INR 7.64 billion. In constant currency terms, revenue from this business grew 19% on year. The company maintained its robust double-digit growth in international businesss amid high input costs and currency headwinds in select markets, it said.

 

The company's earnings before interest, taxes, depreciation, and amortisation for the quarter rose 5% on year to INR 6.55 billion, beating analysts' estimate of INR 6.46 billion. However, its EBITDA margin for the quarter contracted 360 basis points on year to 20.1%. The company's margins for the quarter were impacted by a sharp rise in key commodities' prices, the company said. 

 

Marico's total expenditure for the quarter grew over 28% on year to INR 26.59 billion. As in the case of on-year growth in revenue, the company's total costs also rose at its highest pace in four years during the latest quarter. This was mainly led by a near 7% on-year rise in raw material cost during the quarter to INR 11.84 billion. Raw material cost accounted for 45% of the company's total costs during the quarter. Apart from this, the company's expenses related to advertisement and sales promotion during the quarter rose nearly 25% on year to INR 2.99 billion. This was led by continued investments to strengthen its franchises and accelerate diversification. 

 

Marico's coconut oil brand Parachute, which contributed to 35% of the company's India sales, reported 31% growth in revenue, despite a 1?cline in volume. The decline in volume was amid unprecedented hyperinflationary input costs and pricing conditions, the company said. However adjusted for ml-age changes, the brand's volume grew 1% during the quarter. 

 

Copra prices rose 18% on a sequential basis and 107% on a year-on-year basis during the June quarter, the company said. "While copra prices continued to witness sequential inflation due to irregular weather patterns and market-specific dynamics, we remain confident of navigating these short-term headwinds on the back of robust brand strength and scaled back-end capabilities," the company said. "We expect Parachute to remain steady and reinforce its competitive edge while market conditions settle during the course of this year," it added.

 

The company's value added hair oils segment grew 13% in value terms, witnessing a considerable step-up in the pace of recovery,
driven by sustained traction in the mid and premium segments, Marico said. The company expects healthy growth momentum in the franchise as it gradually pivots investments from trade-led activations to brand-building initiatives and drives direct reach expansion through Project SETU, the company said. Revenue from the Saffola edible oils segment grew 28% during the quarter, while also proactively passing on the benefit of the recent import duty reduction on vegetable oils to consumers. The company delivered mid-single digit volume growth under this brand. 

 

The company's food segment sales grew around 20% on year. Its premium personal care sustained its accelerated growth trajectory, led by the digital-first portfolio. 

 

In the international business, Bangladesh posted 17% growth in constant currency terms, led by robust growth in core and 
new franchises. The fundamental and medium-term growth outlook for the Bangladesh business remains intact, Marico said. The Vietnam business saw a muted quarter, with mere 1% growth in constant currency terms. However, the company expects gradual recovery in operations from the country in the coming quarters. Operations in South Africa also remianed flat, while the growth aspiration for the year remains intact, Marico said. Its operations in Middle East and North Africa continued its robust growth momentum and delivered 42% growth in constant currency terms, with both the Gulf region and Egypt recording strong growth.  

 

OUTLOOK

The company anticipates a gradual uptick in overall demand patterns in the quarters ahead, aided by a combination of easing 
inflation levels, a favorable monsoon, and continued policy support, Marico said. It expects steady growth in its core categories, despite input cost headwinds in the near term. This is expected to be further aided by ongoing initiatives to support select general trade channel partners and transformative expansion under Project SETU, the company said. 

 

The company expects India revenue share of the foods and premium personal care portfolio to expand to around 25% by 2026-27 (Apr-Mar). It also expects gradual improvement in gross and operating margins of the foods portfolio, as it scales up over the medium term.

 

It also aims to maintain double-digit constant currency growth momentum in its international business over the medium term. "We expect to sustain positive volume and revenue growth momentum through the year, while driving resilient profit growth amidst heightened input cost pressures. We expect the impact of these unprecedented margin headwinds to peak out in the first half of this year and ease gradually thereafter," the company said.

 

On Monday, shares of the company closed at INR 723.30 on the National Stock Exchnage, up 1.7% from the previous close.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury and Avishek Dutta

 

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