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Tag: Marico financials

  • Marico Q4: Net profit surges 14.1% driven by volume growth

    Marico Q4: Net profit surges 14.1% driven by volume growth

    NEW DELHI: Consumer goods major Marico has reported a 14.1 per cent year-on-year growth in consolidated profit at Rs 227 crore for the quarter ended 31 March 2021, driven by volume-led strong revenue growth.

    Revenue from operations shot up 34.5 per cent to Rs 2,012 crore compared to the year-ago quarter, backed by robust volume growth of 25 per cent in the domestic business and constant currency growth of 23 percent in the international business, the Saffola oil maker said in its BSE filing.

    The foods portfolio grew 134 per cent in value terms in the quarter and crossed Rs 300 crore in turnover in FY21. “The base oats franchise grew by 84 per cent in value terms, backed by increased penetration and market share gains,” noted the FMCG player.

    Parachute Rigids grew 29 percent in volumes, albeit on a low base, undeterred by price hikes and pullback of consumer offers to counter a part of the input cost push.

    “Value-added hair oils grew 22 per cent in volumes with all of the key brands clocking double-digit growth. Saffola edible oils extended stellar run with 17 per cent volume growth despite a particularly strong base, on the back of investment in new markets and increasing household penetration,” the company added.

    At the operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 13.1 percent year-on-year to Rs 319 crore but margin contracted 300 bps year-on-year to 15.9 per cent in Q4.

    Advertising and sales promotion grew by 35 per cent as the company invested aggressively mainly in core franchises and food innovations while continuing to drive spending rationalisation and channelising investment towards growing franchises.

    In the international business, “Bangladesh clocked 20 per cent constant currency growth. South East Asia also reverted to positive territory with 13 per cent constant currency growth. MENA and South Africa also gained on a low base,” said Marico.

  • Q1-2016: Marico marketing spends at Rs 197.52 crore

    Q1-2016: Marico marketing spends at Rs 197.52 crore

    BENGALURU:Indian consumer products in beauty and wellness space company Marico Limited (Marico) spent 2.8 per cent more towards advertisement and sales promotion (ASP, marketing spends) during the quarter ended 30 June, 2015 (Q1-2016) at Rs 197.52 crore (11.1 per cent of total income from operations or TIO) as compared to the Rs 192.18 crore (11.8 per cent of TIO) in Q1-2015 and was 44 per cent more than the Rs 137.15 crore (11.2 per cent of TIO) in the immediate trailing quarter.

    Notes: 100,00,000=100 Lakhs = 1 crore = 10 million

    During a 14 quarter period starting Q4-2012 until the current quarter, the company reported record TIO for the current quarter at Rs 1783.22 crore, which was 9.9 per cent higher YoY than the Rs 1623.13 crore in Q1-2015 and 45.4 per cent more than the Rs 1226.25 crore in the immediate trailing quarter (Ref Fig B below). The company says that its topline growth was driven by sixper cent volume growth in India leading to overall volume growth of fiveper cent. Marico’s Domestic business recorded a value growth of 12 per cent while the International business posted a growth of fourper cent.

    Company speak

    Marico in its Q1-2016 earnings release says that market share gains continue in approximately 80 per cent of its portfolio; almost the entire domestic portfolio gained share. Marico’s FMCG business in India achieved a turnover of RS 1,428 crore ($227 million) during the quarter, a growth of about 12 period over Q1-2015. The Business continues to gain market share in more than 95 per centof the portfolio reveals the company.

    The company says that it has seen healthy volume growth in key categories in India: Parachute Rigids- eightper cent and Value Added Hair Oils (VAHO) 14 per cent with a continued premiumization in VAHO in India with higher share gain in value (230 bps) as compared to volume (124 bps). The company has four Prototypes in the market – three in Value Added Hair Oils and one in Leave-in Conditioners to fuel premiumization of hair nourishment portfolio. These prototypes will be scaled up based on prototype results.

    Marketing spends

    Marketing spends in Q1-2016 have been the highest during the fourteen quarter period under consideration in terms of absolute rupees. In terms of percentage of TIO, ASP was highest in Q3-2013 at 14.1 per cent of TIO (Rs 157.82 crore). While in absolute rupees, ASP shows a linearly increasing trend during the 14 quarters under consideration, in terms of percentage TIO, the trend declines linearly during the same period. Please refer to Figs. A and A-1 below.

    Profit after Tax

    Marico’s TIO numbers have been mentioned above. During the period under consideration in this report, the company has reported the highest profit after tax (PAT) in the current quarter at Rs 237.83 crore (13.3 per cent of TIO), which was 28.4 per cent more than the Rs 185.28 crore (11.4 per cent of TIO) in Q1-2015 and was more than double (2.16 times) the Rs 110.04 crore (nineper cent of TIO) in Q4-2015.