Marico Q1 Results: Profit Rises 8.7%, Meets Estimates

Marico Ltd.'s first-quarter profit rose, in line with analysts' estimates.

Net profit of the maker of Parachute hair oil rose 8.7% year-on-year to Rs 474 crore in the quarter-ended June, according to an exchange filing on Monday. That compares with the Rs 461-crore consensus estimate of analysts tracked by Bloomberg.

The company achieved volume growth of 4%, aligning with market expectations. India sales saw robust growth of 7.4%, while international sales grew by 4.8%, reflecting balanced expansion across geographies. The figures underscore Marico's resilient business model and its ability to navigate through varying market conditions, it said.

• Revenue up 6.7% to Rs 2,643 crore versus Rs 2,477 crore (Bloomberg estimate: Rs 2,659 crore).

• Ebitda up 9.1% to Rs 626 crore versus Rs 574 crore (Bloomberg estimate: Rs 623 crore).

• Margins at 23.7% versus 23.2% (Bloomberg estimate: 23.5%).

• Net Profit up 8.7% at Rs 474 crore versus Rs 427 crore (Bloomberg estimate: Rs 461 crore).

Marico's flagship brand, Parachute Coconut Oil, which contributes to 34% of the company's domestic revenue, saw a modest growth of 2% in volume and 6% in value.

This performance underscores the steady demand for Parachute, maintaining its position as a staple in the Indian market. On the other hand, Saffola Edible Oils, accounting for 16% of domestic revenue, experienced mid-single-digit volume growth, although it faced a slight decline in value growth by 1%. This indicates a mixed performance, potentially influenced by pricing pressure or shift in consumer preferences.

However, the value-added Hair Oils segment, which makes up 22% of domestic revenue, faced challenges with a 5% decline in volume growth. This segment's performance highlights areas needing strategic interventions to revive growth.

Despite these mixed results across key product categories, Marico's overall domestic performance remains resilient, supported by strong showings in its core brands and continued efforts to adapt to market dynamics, it said.

As per the investor presentation, Marico is optimistic about its growth trajectory, particularly in its foods segment, which is projected to achieve a 20% plus compound annual growth rate and double in scale by FY27 as compared to FY24.

The company aims to achieve a double-digit Ebitda margin in its digital-first brands by FY27 and maintain double-digit constant currency growth.

Additionally, Marico expects a shift in its revenue mix, with Bangladesh share expected to decrease from 44% to 40% by FY27, and Foods and Premium Personal Care revenue share projected to rise to 25% by FY27E.

This strategic focus on high-growth areas and diversification of revenue sources reflects Marico's commitment to sustaining long-term profitability and market leadership, it said.