Marico Q4 results: Consolidated PAT up 19% to ₹305 crore, single-digit revenue growth | Mint
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Business News/ Markets / Stock Markets/  Marico Q4 results: Consolidated PAT up 19% to 305 crore, single-digit revenue growth
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Marico Q4 results: Consolidated PAT up 19% to ₹305 crore, single-digit revenue growth

Marico sees healthy upside in Q4 consolidated PAT on year-on-year basis, however, sequentially the performance was lower. Revenue saw a single-digit growth YoY in the quarter.

Marico announced fourth quarter and year-ended earnings for March 31, 2023 period. Premium
Marico announced fourth quarter and year-ended earnings for March 31, 2023 period.

FMCG major, Marico witnessed a mixed performance in the fourth quarter of FY23. Although, the company posted a growth of 18.67% YoY in consolidated PAT for Q4FY23, sequentially the performance was a decline of 8.41%. A similar performance was seen in revenue from operations, however, the year-on-year growth was at a single-digit. The company's margins improved furthermore in the quarter. Marico expects the upside trend in its key verticals to continue in FY24. 

Marico's PAT stood at 257 crore in Q4FY22 and at 333 crore in Q3FY23.

In the latest quarter, EBITDA stood at 393 crore up by 14% from 346 crore in Q4FY22. EBITDA margins expanded to 17.5% in Q4FY23 versus 16% in Q4FY22, expanding by 153 bps.

Also, the company's gross margins expanded by 294 bps YoY and 247 bps sequentially, given the moderation in key commodity prices and favorable portfolio mix in the India business. A&P spends was at 9.4% of sales in Q4, up 3% YoY and up 8% on 4-year CAGR basis, as the Company prioritized investments towards strategic brand building of core and new franchises.

Meanwhile, revenue from operations surged by 3.65% to 2,240 crore in Q4FY23 versus 2,161 crore in Q4 of FY22. Sequentially, revenue was down as against 2,470 crore in Q3FY23.

Read here: Federal Bank Q4FY23 results: Net profit jumps 67%, declares final dividend; shares slump over 8%

It said, the India business continued to better the performance of the preceding quarter with an underlying volume growth of 5%. Volume growth on a 4-year CAGR basis stood at 6%. Domestic revenues was at 1,683 Crore, up 2% YoY, lagging volume growth, due to price drops taken in Parachute Coconut Oil and Saffola Edible Oils during the year in response to falling input prices. Consistent focus on strengthening brand equity across portfolios and execution translated into ~90% of the portfolio either gaining or sustaining market shares and ~85% of the portfolio either gaining or sustaining penetration, both on MAT basis.

In India business, among the sales channels, General Trade declined in low single-digits, while MT and Ecommerce grew in double digits. Given the recurring trend, MT and E-com contribution to domestic sales went up to ~29% in FY23.

Further, in regards to international business, Marico said, that this had another stellar quarter delivering constant currency growth of 16%, while weathering global macroeconomic uncertainty and currency devaluation headwinds in some of the geographies. Each of the regions posted a strong performance reflecting the underlying strength of the businesses.

Read here: Piramal Enterprise Q4: NBFC posts net loss of 196 cr, dividend declared

Marico believes revenue growth to inch up as pricing comes into the base from H2FY24 onwards.

In FY24, Marico expects gross margins to trend up by potential 200-250 bps. In FY23, the overall gross margins stood at 45.2%.

While operating margins are seen to expand more than 100 bps in FY24. The margins ended the year FY23 at 18.5%.

As of March 31, 2023, Marico's coconut oil franchise holds a 62% market share in India, while Parachute Rigids within Coconut Oils holds a 53% market share. Further, saffola oats hold 43% share, Value Added Hair Oils account for 28% market share, Post wash Leave-on Serums has 60% share, and Hair Gels/Waxes/Creams account for 53% market share.

On BSE, Marico's stock price closed at 493.65 apiece down by 0.72%.

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Published: 05 May 2023, 04:36 PM IST
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