Marico Ltd reported a 4.2 percent year-on-year rise in consolidated net profit to Rs 399 crore for the October-December quarter, while revenue grew 15 percent to Rs 2,794 crore, the company said in its Q3 FY25 earnings release. The FMCG major benefited from higher sales volumes in its domestic and international businesses but faced margin pressures due to rising input costs.
Marico’s EBITDA increased by 4 percent YoY to Rs 533 crore, while EBITDA margin contracted by 210 basis points to 19.1 percent. The company attributed this decline to higher raw material costs, particularly a sharp increase in copra and vegetable oil prices, which outpaced its pricing actions. Gross margin fell by about 180 basis points YoY.
The board declared an interim dividend of Rs 3.5 per share, with a record date of 7 February 2025. The dividend will be paid on or before 2 March 2025. Marico shares fell post Q3 results, giving up the day's gains. The stock was trading down 0.44 percent at Rs 669 on NSE.
Domestic Business: India revenue rose 17 percent to Rs 2,101 crore, supported by a 6 percent volume growth. This marked the highest volume and revenue growth in 13 quarters, aided by price hikes across key product categories. However, gross margins were affected by cost inflation. The company’s general trade (GT) channel saw sluggish growth, while modern trade (MT) and e-commerce drove sales.
Parachute Rigids recorded 3 percent volume growth, despite rising copra prices. Price hikes helped push revenue growth to 15 percent. The company implemented another 5 percent price increase at the end of the quarter, citing continued cost pressure.
Other key segments saw mixed trends. Hair oils declined in value terms but showed signs of sequential recovery, particularly in mid- and premium-priced products. The foods portfolio reported strong growth, nearing an annual run rate of Rs 1,000 crore, while the premium personal care segment, including digital-first brands, continued to expand. Edible oils saw stable volumes despite rising input costs, with revenue growth driven by price increases.
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International Business: Revenue grew 16 percent in constant currency terms, but performance varied across markets. Bangladesh reported 20 percent growth on a weak base, while MENA posted a 35 percent rise. South Africa registered a 17 percent increase, but South East Asia struggled due to weak demand and geopolitical issues in Myanmar. Currency depreciation in some markets impacted earnings, leading to an estimated 2 percent hit on consolidated EBITDA.
Outlook
Marico expects demand to remain stable in the coming quarters, aided by rural recovery and government support measures. However, rising input costs could continue to weigh on profitability. “While the sharper-than-anticipated rise in input costs will have some transient impact on margins in the near term, we remain biased towards driving top quartile volume growth and double-digit revenue growth in the near and medium term,” said Saugata Gupta, managing director and CEO.
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