Marico Limited , one of India's leading consumer products companies, has reported robust financial results for the first quarter. The company demonstrated significant growth across key metrics, with consolidated revenue reaching multi-quarter highs.

Financial Highlights

• Consolidated revenue from operations increased by 23% year-on-year to ₹3,259.00 crore.
• India business revenue grew by 27% to ₹2,495.00 crore.
• International business delivered a 19% constant currency growth.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 5% to ₹655.00 crore.
• Profit After Tax (PAT) increased by 9% to ₹504.00 crore.

Segment Performance

India Business

The India business continued its positive momentum, posting a 9% underlying volume growth. Key highlights include:

• Parachute Rigids registered a 1% volume decline, but showed resilience with 31% revenue growth amid unprecedented input cost inflation.
• Value-Added Hair Oils grew by 13% in value terms, gaining approximately 140 basis points in value market share.
• Saffola Edible Oils posted mid-single digit volume growth and 28% revenue growth.
• Foods portfolio recorded about 20% value growth year-on-year.
• Premium Personal Care sustained its accelerated growth trajectory, led by the Digital-first portfolio.

International Business

The international business maintained its robust double-digit constant currency growth momentum:

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

Strategic Initiatives and Outlook

Marico has outlined aggressive growth targets for the coming years:

• The company aims to reach ₹20,000.00 crore in revenue over the next 5 years.
• Marico is targeting around 25% revenue growth and high single-digit volume growth as a base case.
• The digital-first portfolio is expected to achieve 2.5x of Annual Recurring Revenue (ARR) by maintaining double-digit EBITDA margins.
• Foods portfolio is projected to grow at a 25%+ CAGR to reach about 8x of revenues.

Marico is focusing on expanding its premium and urban-centric portfolios through organized retail and e-commerce channels. The company is also implementing Project SETU to drive growth in General Trade through transformative expansion in direct reach.

Management Commentary

Saugata Gupta, MD & CEO of Marico, commented on the results: "The new fiscal has begun on a promising note for both our India and international businesses, with growth trends moving in a positive direction. The improving trajectory of our core portfolios, coupled with accelerated growth in foods and digital-first portfolio, have driven underlying volume growth in the India business closer to double digits."

He added, "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."

Marico remains confident in its ability to deliver consistent and competitive growth in the medium term by executing a more focused and channel-specific portfolio and SKU strategy. The company expects to sustain positive volume and revenue growth momentum while driving resilient profit growth amidst heightened input cost pressures.

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.