On Friday, for the quarter ending June, FMCG major Marico reported a consolidated net profit of Rs 427 crore, beating analysts’ estimates. The Mumbai-based company reported a net profit of Rs 371 crore for the corresponding period a year ago.
Marico is one of India’s leading consumer products companies, in the global beauty and wellness space. Marico touches the lives of 1 out of every 3 Indians, through its portfolio of brands such as Parachute, Saffola, Saffola FITTIFY Gourmet, Saffola ImmuniVeda, Saffola Mealmaker, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Pure Sense, Coco Soul, Revive, Set Wet, Livon, Just Herbs, True Elements and Beardo. The international consumer products portfolio contributes to about 23% of the Group’s revenue, with brands like Parachute, Parachute Advansed, HairCode, Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, Purité de Prôvence, Ôliv, Thuan Phat and Isoplus.
According to a regulatory filing, for the first quarter of the current financial year, its revenue came in at Rs 2,477 crore against Rs 2,558 crore for the year-ago period.
According to reports, Marico’s quarterly net profit was estimated at Rs 407 crore and revenue at Rs 2,593 crore.
Saugata Gupta, the MD and CEO of Marico said, “The year has started on a mixed note with domestic volume growth marred by one-offs, while the international business was resilient in a challenging environment. However, we remain confident of an improving trajectory of growth in the domestic business and sustained momentum in the international business. We have delivered robust margin expansion on the back of a softening input cost environment and expect to deliver healthy profitability this year.”
According to the filing, the company reported revenue of Rs 1,827 crore from its India business for the June quarter as against Rs 1,921 crore a year ago. Its international revenue expanded two per cent on a year-on-year basis to Rs 650 crore.
Marico said volume trends in the FMCG sector seem to be improving and domestic volume growth looks resilient despite the material impact of one-offs. It said its international business sustained its strong growth trajectory.
According to a statement, in the financial year ending March 2024, the company’s expectation of a gradual volume recovery remains intact, especially in the rural segment. It was further added that however, the impact of erratic weather patterns on agri-incomes will be monitored
For the full year, Marico expects a record operating margin of more than 20 per cent with incremental gross margin tailwinds in the June quarter.
Marico shares ended 3.4 per cent higher at Rs 573.3 apiece on BSE ahead of the earnings announcement.
In the June quarter, the Marico stock grew 10.7 per cent, in line with a 10.5 per cent rise in the benchmark Nifty index.
