Marico’s Q2FY24 Quarter Results

• Marico reported 0.4% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter ended September (Q2FY24). On a year-on-year (YoY) basis, it witnessed a marginal de-growth of 0.04%.
• Its expenses for the quarter were up by 4% QoQ and down 4% YoY.
• The net profit de-grew 17% QoQ and 17% YoY.
• The earnings per share (EPS) of Marico stood at 2.7 during Q2FY24.

Marico’s Financial Statements for Q2FY24:

Key Result Highlights:

• The company’s India business posted volume growth of 3%. Domestic revenue at Rs 1,832 crore, was down 3% on a year-on-year basis, lagging volume growth due to price corrections in key portfolios in the last 12 months. Majority of the portfolio witnessed healthy trends across offtakes with ~85% of the business either gaining or sustaining market share and penetration.
• The International business continued its strong momentum and delivered constant currency growth of 13% amidst a challenging geo-political scenario and macroeconomic headwinds in select markets.
• During the quarter, the company witnessed a 685 basis point (bps) gross margin expansion on a YoY basis.
• It witnessed a 272 bps earnings before interest tax depreciation and amortization (EBITDA) margin expansion on a YoY basis.
• There was revenue decline due to pricing drops in key domestic portfolios & currency headwinds in international markets.
• The company’s Parachute Coconut Oil business contributed to 31% of domestic revenues.
• Its Saffola Franchise (Edible Oils + Foods) contributed 29% of domestic revenues.
• The company’s Value Added Hair Oils contributed to 22% of domestic revenues.
• During the quarter, demand trends in the domestic FMCG sector stayed largely in line with the preceding quarter.
• Urban sentiment improved sequentially, while instances of higher food inflation and uneven rainfall distribution led to a slower-than-expected pace of recovery in rural demand.
• Packaged foods, given its high urban salience, maintained a healthy growth trajectory and continued to outpace mass home and personal care categories.

Management Commentary

• The company remains optimistic about a gradual recovery in sectoral volume growth, aided by range-bound retail inflation, onset of the festive season and continued government spending.
• It continues to draw confidence from the resilient offtake growth, market share and penetration gains posted by key franchises and expect a gradual improvement in demand sentiment to reflect in the performance of domestic business in the second half of the year.
• The International business delivered robust 11% constant currency growth in H1, despite a challenging scenario and currency devaluation headwinds in select markets. The company expects to maintain the strong growth momentum in H2 on the back of the broad-based growth construct of the business.

Interim Dividend Update

• The company declared Interim Equity Dividend for the Financial Year 2023-24 of Rs. 3.00/- per equity share of Re. 1 each.
• The record date for reckoning the list of shareholders who shall be entitled to receive the said interim dividend is Tuesday, November 7, 2023.
• The Interim dividend will be paid to such shareholders on or before Wednesday, November 29, 2023.

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results