Marico likely to increase prices in near future

Marico has announced its Q1 FY09 results. The consolidated net sales were at Rs 601 crore versus Rs 469 crore (YoY).

The consolidated net profit was at Rs 46.3 crore versus Rs 40.2 crore (YoY).

Key Takeaways from Marico concall:

• There is continues growth in topline and bottomline.
• There was a pressure on margin.
• The company is continued to invest in brand.
• The current slowdown is good time to look at cost structure.
• There is 30% growth in prices of Parachute.
• The company does not want to take any anticipated price increase.
• The spending on advertisement for FY09 will be 12-13%. And for Q1 it is at 11.9%. The rise in advertisement expenses is due to the launching of new products.
• The company may increase prices in near future.
• The Kaya service is on expected line. The company has opened 4 clinics in India.
• Saffola has shown 28% growth in Saffola.
• The haircare contribution in sales is 15% on domestic and also at international level.
• The revenue breakup-
  Parachute- 32%
  Saffola- 16%
  Swikar- 7%
  Kaya Clinic- 6%
  Hair oil- 13%
  International buz- 15%

For more details, listen to concall...