Marico Limited , one of India's leading consumer goods companies, has reported robust financial results for the first quarter, demonstrating resilience and growth across its business segments.

Strong Revenue Growth

The company posted a consolidated revenue of ₹3,259.00 crore for Q1, marking a significant 23% year-on-year increase. This growth was driven by a 9% volume growth in the India business and a 19% constant currency growth in the international business.

Profit Performance

Despite inflationary pressures, Marico managed to deliver a 9% year-on-year growth in Profit After Tax (PAT), which stood at ₹504.00 crore for the quarter. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 5% to ₹655.00 crore, although the EBITDA margin contracted by 360 basis points to 20.1% due to input cost pressures.

Segment Performance

India Business

The India business revenues stood at ₹2,495.00 crore, up 27% year-on-year. Key highlights include:

• Parachute Rigids posted 31% revenue growth, despite a 1% volume decline due to unprecedented input cost inflation.
• Value-Added Hair Oils grew by 13% in value terms, with a 140 bps gain in value market share.
• Saffola Edible Oils registered 28% revenue growth with mid-single digit volume growth.
• Foods portfolio posted ~20% value growth year-on-year.
• Premium Personal Care, led by the Digital-first portfolio, sustained its accelerated growth trajectory.

International Business

The international business maintained its robust growth momentum with a 19% constant currency growth. Notable performances include:

• Bangladesh posted 17% constant currency growth (CCG).
• MENA (Middle East and North Africa) delivered an impressive 42% CCG.
• South Africa recorded flattish growth in CCG terms.
• Vietnam had a muted quarter but is expected to recover gradually.

Strategic Initiatives and Outlook

Marico's management expressed confidence in the company's growth trajectory, highlighting several strategic initiatives:

1. Project SETU: A transformative expansion in direct reach footprint to drive growth in General Trade channels.
2. Foods Portfolio Expansion: Aiming to grow Foods at 25%+ CAGR to reach ~8x of FY20 revenues by FY27.
3. Digital-first Portfolio: Targeting to scale this portfolio to ~2.5x of FY24 ARR by FY27.
4. Premiumization: Focusing on driving differential growth in urban-centric and premium portfolios.

Saugata Gupta, MD & CEO of Marico, commented, "The new fiscal has begun on a promising note for both our India and international businesses, with growth trends moving in a positive direction. Despite sharp inflationary headwinds in key commodities in the near term, we expect to maintain strong volume and revenue momentum, along with a resilient earnings performance, over the course of the full year."

Future Outlook

Looking ahead, Marico anticipates a gradual uptick in overall demand patterns, supported by easing inflation levels, favorable monsoon season, and continued policy support. The company expects to:

• Sustain positive volume and revenue growth momentum through the year.
• Drive resilient profit growth amidst heightened input cost pressures.
• Expand the India revenue share of Foods and Premium Personal Care portfolios to ~25% by FY27.
• Maintain double-digit constant currency growth momentum in the International business.

With its strategic focus on core portfolio growth, accelerated diversification, and expansion in premium categories, Marico appears well-positioned to navigate near-term challenges and capitalize on long-term growth opportunities in the consumer goods sector.

Marico Limited, a leading Indian consumer goods company, reported a strong performance for the first quarter, with its consolidated net profit rising 9.6% year-over-year to ₹5.04 billion. This impressive growth surpassed analysts' expectations of ₹4.95 billion.

Revenue Growth and Market Performance

The company's revenue for Q1 increased by 23.5% to ₹32.60 billion, up from ₹26.40 billion in the same period last year. While this figure fell slightly short of the estimated ₹32.70 billion, it still represents significant growth for Marico.

EBITDA and Margin Performance

Marico's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a modest increase of 4.1% year-over-year, reaching ₹6.56 billion. However, this fell short of the projected ₹6.64 billion.

The EBITDA margin experienced a compression, decreasing to 20.10% from 23.69% in the previous year. This decline was more pronounced than anticipated, as analysts had estimated a margin of 20.30%.

Segment Performance

According to the company's financial results, Marico's business is organized into two main segments:

1. India: This segment generated revenue of ₹2,495.00 crore for the quarter.
2. International: The international business contributed ₹764.00 crore to the total revenue.

Financial Position

Marico's consolidated financial position showed:

Face value of ₹1 per share

Management Commentary

Saugata Gupta, Managing Director & CEO of Marico Limited, approved the financial results at the board meeting. The company's performance demonstrates its resilience and ability to grow in challenging market conditions.

Looking Ahead

While Marico has shown strong top-line growth and profit performance, the compression in EBITDA margin suggests that the company may be facing some cost pressures. Investors and analysts will likely be watching closely to see how Marico manages these challenges in the coming quarters while maintaining its growth trajectory.

Marico continues to be a significant player in the Indian consumer goods market, with its diverse portfolio of brands touching the lives of 1 out of every 3 Indians. The company's ability to deliver growth in both domestic and international markets underscores its strong market position and effective business strategies.

Note: All financial figures are in Indian Rupees (₹) unless otherwise stated.