Marico has posted a 3.28 per cent rise in its consolidated net profit to Rs 377 crore for the June 2022 quarter, compared with Rs 365 crore in the corresponding period last year. The FMCG company’s revenue from operations during April-June 2022 increased 1.3 per cent to Rs 2,558 crore, against Rs 2,525 crore in the year-ago period.
The company’s total expenses witnessed a fall to Rs 2,076 crore during the first quarter of FY23, from Rs 2,085 crore a year ago. Its revenue from the domestic market dropped 3.56 per cent to Rs 1,921 crore, compared with Rs 1,992 crore in the corresponding quarter a year ago.
“In India, the FMCG sector witnessed volume decline in Q1FY23 for the third quarter in a row and value growth continued to be price-led. Domestic volumes declined by 6 per cent year-on-year, dragged by a double-digit decline in Saffola Oils. Excluding Saffola Oils, domestic volume growth was 1 per cent,” the company said in a statement.
Marico’s domestic volumes fell 6 per cent year-on-year, dragged by a double-digit decline in Saffola Oils. Gross margin expanded 401 bps year-on-year, attributable mainly to benign copra prices and favorable mix impact. Its advertising and promotional spend increased 14 per cent, as the company maintained investments towards strategic brand building of core and new franchises.
The company’s Ebitda margin stood at 20.6 per cent, which was 159 bps higher as compared to the year-ago period. Its Ebitda also jumped 10 per cent year-on-year. Ebitda stands for earnings before interest, tax, depreciation and amortisation.
“The consolidated financial results for the quarter ended June 30, 2022, comprise results of Marico Limited, its subsidiaries and step down subsidiaries in India, Bangladesh, UAE, Egypt, South Africa, Malaysia, Sri Lanka and Vietnam. All the aforesaid entities are collectively called ‘Marico’,” the company said in a statement.
Marico’s income from international sales jumped 19.51 per cent to Rs 637 crore, compared with Rs 533 crore in Q1 FY22.
The company has acquired a 53.98 per cent stake and gained control of HW Wellness Solutions Pvt Ltd with effect from May 23. The fair value of assets and liabilities acquired have been provisionally determined by the company and accounted for in accordance with IND AS 103 – ‘Business Combination’. Results for the quarter ended June 30, 2022, include the impact of the above transaction with effect from May 23, 2022 and are not comparable with previous corresponding periods, Marico said.
During the year ended March 31, 2022, the company purchased a 52.38 per cent stake and gained control of Apcos Naturals Private Limited with effect from July 21, 2021.
Marico MD and CEO Saugata Gupta said, “In India, despite the strong headwinds, we have continued to record market share and penetration gains, and deliver operating margin expansion. We expect volume trends to improve once inflation pressures ease.”
Marico is a fast-moving consumer goods (FMCG) company that owns popular brands such as Saffola, Livon, Hair & Care and Parachute.
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