On October 30, 2023: Marico Limited (BSE, NSE: MARICO) announced its Q2 2023-24 financial results, delivering a somewhat muted report with Revenue from Operations down at ₹2,476 Cr, a decrease of 1% YoY, but underlying volume business growth at 3%. Nonetheless, the company has registered a stellar performance with 13% CCG related to its international business.
Additional Read: Q2 Results Dashboard
Table of Content
Key Highlights
Here are the key highlights of Marico Limited’s Q2 report for FY23-24:
- On the domestic front, the company saw a volume growth of 3%.
- Premium Personal Care and Food products contribute to ~20% of domestic revenues.
- The company has released a superior 13% CCG in its international business sphere, challenging the current uncertain geopolitical atmosphere and macroeconomic headwinds in specific markets.
- The Gross Margin is at a 26-quarter high, and EBITDA is up 15% YoY.
- Profit After Tax (PAT) is up 17% YoY.
- The company is posed for the delivery of its highest-ever operating margin in FY23-24.
- While demand for products in the urban segment improved, the rural demand decreased due to uneven rainfall and high food inflation.
Additional Read: Marico Share Price
Business on the Indian Front
In the first half of FY23-24, domestic business has recorded a volume growth standing at 3%. There is resilient offtake growth even with a sluggish demand attitude in rural India relative to the urban ecosystem. Penetration and market share gains posted by main franchises show optimism and an improved demand sentiment for the remaining months of this fiscal year.
The business in India delivered a turnover amounting to ₹1,832 Cr, a low of 3% YoY, but Parachute Rigids recorded 1% volume growth as did Value-added Hair Oils in general. Saffola Edible Oils registered a low growth volume in single digits, although vegetable oil prices were quite volatile in Q2.
Business on the International Front
On the international business side, the figures are very positive with a CCG at more than 13% for Q2 and 11% for the first half of FY23-24. Again, the company has risen to challenges present in global markets, shining with robust growth momentum and the foundation of a broad-based growth structure of the business. In this second quarter, the Gross Margin went up by 685 bps YoY and sequentially, it stood at 50 bps, this, its highest in 26 quarters. EBITDA Margin was at 20.1%. The Gross Margin, and Operating Margin, respectively, is estimated to increase to ~350-400 bps and ~200 bps, respectively, in the coming months of FY23-24, in light of the company’s continued strategies in aggressive branding and strengthening core equity.
Additional Read: FMCG Sector in India
Management Commentary
The MD, and CEO of Marico Limited, Saugata Gupta, had some insights on the results and these are shared below:
- The international and domestic businesses have delivered encouraging results in spite of challenging markets.
- Substantial progress has been made towards the objective of the achievement of diversification with Foods and Digital First portfolios showing scaled-up operations.
- The company sees positive growth going ahead.
- The company continues to hold the aim of displaying improvement over main performance parameters on an entire-year basis.
Rating and Ranking Information
Here are the achievements of Marico Limited in Q2:
- Marico has been rated “AA” in MSCI’s ESG ratings.
- The company has been ranked in the “Leadership” category of the S&P BSE 100 companies.
Financial Results
Here is a tabular snapshot of the financial results (profit and loss statement) of Q2 (all figures in ₹ Cr except when % is indicated):
| Metrics | Q2 FY2023-24 | Q2 FY2022-23 | Change % |
| Revenue from Operations | 2,476 | 2,496 | 1% |
| EBITDA | 497 | 433 | 15% |
| EBITDA Margin | 20.1% | 17.3% | 272 bps |
| Profit Before Tax | 476 | 400 | 19% |
| Profit After Tax | 353 | 301 | 17% |
Additional Read: Best FMCG Stocks to Buy in India in 2023
About Marico Limited
Marico limited is a top Indian consumer products player and a company that is engaged in the manufacture of wellness and personal care goods, among others. It has its headquarters in Mumbai, India, and a presence in global markets spread over 25 countries, especially emerging markets of Africa and Asia. It is an enterprise that nurtures leading brands spread over several categories comprising edible oils, hair care, healthy foods, skin care, fabric care, and male grooming.
Marico is known for touching the lives of 1 in every 3 Indians via its vast brand portfolio like Parachute, Hair & Care, Saffola, Mediker, Revive, Kaya Youth, Livon, and more. In India, the corporation has 8 factories, spread over the cities of Puducherry, Jalgaon, Baddi, and others. With a consumer-centric outlook, Marico is famous for delivering high-quality products and maintaining its key position in the consumer good sector.
Source: https://marico.com/india/investors/documentation/quarterly-updates
