New Delhi: Domestic FMCG major Marico Ltd on Friday reported an 18.68 per cent rise in its consolidated net profit to Rs 305 crore for the fourth quarter ended March 2023, driven by single-digit volume growth and easing key commodity prices. is inspired. The Harsh Mariwala-led company had posted a net profit of Rs 257 crore in the January-March quarter a year ago, Marico said in a regulatory filing. Its revenue from operations grew 3.65 per cent to Rs 2,240 crore in the quarter under review, from Rs 2,161 crore a year ago.
“During the quarter, continued improvement in consumption trends strengthened prospects as the sector registered low single-digit volume growth in Q4 after five consecutive quarters of volume decline. The improving trend over the coming year will help,” Marico said in its earnings statement.
Marico, which owns popular brands like Saffola, Parachute, Livon etc, said its total revenue grew 5.62 per cent to Rs 2,308 crore in the March quarter. On demand trends, Marico said urban consumption remained flat in the March quarter, though signs of a visible pick-up were awaited. The rural sector is most likely outpaced by the reversal of the declining trend in this quarter.
The company said, “From a category perspective, packaged foods, which have been relatively resilient throughout the year, continued to drive growth for the sector. We expect a gradual pick-up in overall consumption to drive growth in packaged foods.” The pace has to be fast.”
It added that its home and personal care category remained muted after six quarters in particular moving into positive territory. Marico’s total expenses for the fourth quarter of FY23 increased by 2.36 per cent to Rs 1,907 crore.
The company’s revenue from the domestic market grew by 1.75 per cent to Rs 1,683 crore in Q4 FY23. A year ago it was Rs 1,654 crore. “The India business continued to outperform last quarter’s performance with underlying volume growth of 5 per cent,” it added. With a sustained focus and execution on strengthening brand equity across portfolio, 90% of the portfolio is either gaining or maintaining market share and 85% of the portfolio is either achieving MAT (Moving Annual Total (MAT) Accessing or maintaining Aadhaar.
“Among sales channels, general merchandise declined in low single digits, while MT and ecommerce grew in double digits. Reflecting the recurring trend, contribution of MT and e-com to domestic sales increased to 29 per cent in FY23 “
Its Parachute Rigid’s posted a 9 percent volume increase, while Saffola Edible Oils saw a mid-single digit volume decline on a higher volume basis during the outbreak of the Omicron variant of COVID-19 last year.
It added, “Value added hair oils ended the year on a positive note with a value growth of 13 per cent in Q4.” Its food segment is set to grow by 18 per cent in value terms to reach a revenue level of around Rs 600 crore in FY2023.
“We are well on course to close above the Rs 850 crore revenue mark in FY24,” it said. Marico’s revenue from international business grew 9.86 per cent to Rs 557 crore as against Rs 507 crore a year ago. Its market in Bangladesh registered a growth of 9 per cent at constant currency as both the core and new portfolio performed well. Vietnam grew 16 percent in constant currency terms with healthy traction in both the HPC and food franchises.
“MENA grew by 37 per cent, while South Africa grew by 21 per cent in constant currency terms,” it said. Marico’s net profit for the financial year ending March 2023 rose 5.33 per cent to Rs 1,322 crore. It was Rs 1,255 crore in FY22. Its consolidated revenue from operations in FY23 grew by 2.64 per cent to Rs 9,764 crore from Rs 9,512 crore a year ago.
Regarding outlook, Marico said that in the near term, it will achieve volume-based growth and market share across its portfolio in domestic business by distribution expansion, aggressive cost control and substantial investments in market development and brand building.
Shares of Marico Ltd on Friday closed at Rs 493.25 on the BSE, down 0.80 per cent from its previous close, “We expect a gradual pick-up in revenue growth as pricing interventions take effect in the first half of FY2024.” come in.”