Marico’s Financial Statements for Q2FY24:
Profit before tax
Profit after tax
Earnings per share
|Profit before tax||400||567||476||-16%||19%|
|Profit after tax||307||436||360||-17%||17%|
|Earnings per share||2.3||3.3||2.7|
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.
- 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
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