Marico Q3 Results Review - Revenue Growth Trajectory To Turn Positive From Q4: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Marico Ltd. delivered a marginal beat on earnings with a soft topline performance offset by strong margin improvement despite higher advertising and promotion spends and employee costs. Revenue/Ebitda/profit after tax growth came in at -1.9%/12.5%/16.8% YoY respectively, led by 6% constant currency growth in the international business and 2% volume growth in the domestic business, which saw a 3% YoY revenue drop. Revenue saw a decline given the price drops in core brands during the year in the domestic business, channel liquidity issues impacting retailer-level inventory and currency headwinds in the overseas markets. Marico's gross margin expanded sharply by 634 basis points YoY/ 80 bps QoQ to 51.3%, Ebitda margin expanded 272 bps YoY to 21.2% with stronger gross margins partially offset by higher A&P spends (+125 bps), employee costs (+133 bps) and other expenses (+105 bps)..Key takeaways:Marico confident of clocking 450-500 bps improvement in gross margins and 20-21% Ebitda margins for FY24 and double-digit revenue and low-teens earnings growth in FY25,200 bps volume impact of stock reduction undertaken to support general trade channel, mid-single digit growth in foods given the margin focus which should increase to 20% plus from FY25, focus on food business (Rs 7.5 billion revenue target for FY24) would be to scale up high-potential segments like soya, honey, munchies, Value added hair oil business can see high single digit growth from H2 FY25 with softening inflation, Saffola business to pick-up post stability in prices,Parachute should also move to positive growth trajectory in H2 post aggressive demand-generations spends, A&P spends will continue to move up given high growth aspirations in both core and new brands, revenue trajectory to pick up from Q4 FY24 after a muted performance in 9M FY24 driven by gradual volume pick-up led by resilient growth in offtake, market share and penetration andinternational business can see continued double digit CC revenue growth with stable profitability..Click on the attachment to read the full report:.Marico Q3 Results: Profit Rises 16%, Revenue Dips On Weak Rural Demand.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Marico Q3 Results Review - Revenue Growth Trajectory To Turn Positive From Q4: Systematix

Parachute is witnessing healthy offtakes and penetration gains post pricing interventions, Saffola should see some revenue scale-up now as prices seem to have stabilised

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Marico Q3 Results Review - Revenue Growth Trajectory To Turn Positive From Q4: Systematix

Parachute is witnessing healthy offtakes and penetration gains post pricing interventions, Saffola should see some revenue scale-up now as prices seem to have stabilised

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