Marico Ltd has reported a consolidated net profit of Rs 320 crore for the fourth quarter of the financial year 2023-24, up 4.9 percent from the year-ago period.
Revenue increased 1.69 percent from the previous year to Rs 2,278 crore.
Earnings before Tax, Interest, Amortization, Depreciation (EBIDTA) for the quarter came in at Rs 442 crore rising 12.5 percent. EBDITA margin was at 19.4 percent increasing 190 basis points.
The Board of Directors of Marico Limited declared a second interim dividend of Rs 6.50 per equity share of Re. 1 each at its meeting held on February 27, 2024. Together with the first interim dividend of Rs 3.00 per equity share declared on October 30, 2023, the total dividend for the year ended March 31, 2024, amounts to Rs 9.50 per equity share of Re 1 each.
The company said in an investor presentation that the economic growth trajectory is strong with the outlook promising. The company's 75 percent of the domestic business either gained or sustained market share on MAT basis and 100 percent of the domestic business sustained or gained penetration on MAT basis.
The company's mid and premium segments consisting of value added hair oils fared relatively better. The company noted that foods portfolio would be 2 times of current scale in FY27. The portfolio is poised for 20 percent+ CAGR after successful initiatives towards refinements in supply chain and GTM during FY24, the company said in an exchange filing.
The company said that domestic revenue growth is poised to trend higher with pricing and volume growth gradually picking up. The company will continue aggressive diversification.
Parachute Rigids saw a 2 percent volume growth, gaining 53 bps in market share. Value-Added Hair Oils declined 7 percent due to sluggishness in the bottom segment. Saffola Edible Oils had mid-single digit volume growth, and Foods logged a 24 percent value growth YoY, with Saffola Oats maintaining its leadership. Premium Personal Care sustained healthy growth, with Beardo scaling 3 times since FY21. Portfolio diversification efforts showed progress, and international markets like MENA and South Africa performed well, while South-East Asia remained flat.
Marico reflects on FY24 as a year of mixed results, with sectoral volume growth consolidating at a low level, accompanied by a decline in commodity and consumer prices. While premium FMCG segments continued to perform well, mass consumption categories saw slower-than-expected growth due to sluggish rural and urban sentiment, subdued General Trade, and increased competition from regional players. Despite these challenges, Marico remains optimistic, citing improving macro-indicators and forecasts of a normal monsoon. They anticipate gradual growth in core categories, driven by initiatives to enhance profitability for General Trade partners and expand direct reach through Project SETU. Marico aims to sustain growth by focusing on urban-centric and premium portfolios through organized retail and e-commerce channels, leveraging a sharper and targeted portfolio and SKU strategy.
The company with a focus on long-term growth, we're prioritizing General Trade channel enhancement amidst shifting consumer trends. Through initiatives like Project SETU, we aim to expand our reach to 1.5 million outlets by FY27, backed by strategic investments. This project, funded through resource reallocation, aims to drive market share gains, especially in urban and rural areas, while enabling diversification and premiumization in our domestic business.
In the medium term, we aim to deliver double-digit revenue growth through consistent outperformance vis-à-vis the category and market share gains in the domestic core portfolios, accelerated growth in the Foods and Premium Personal Care and double-digit constant currency growth in the International business. "We expect operating margin to inch up over the next few years with leverage benefits as well as premiumisation of the portfolios across both the India and International businesses." the company said in an investor presentation.
Meanwhile, shares of Marico closed 2.93 percent higher at Rs 532 on BSE preceding the earnings.
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