Marico Ltd - Quarterly Update: Q4 FY25

During the quarter, the sector experienced stable demand trends amidst the improving trajectory in rural and mixed trends across mass and premium urban segments. We expect gradual improvement in overall consumption sentiment on the back of moderating retail and food inflation as well as forecasts of a normal monsoon.

In the given context, the India business posted a sequential uptick in underlying volume growth with improving market shares across key franchises. Parachute Coconut Oil witnessed transient sluggishness in volumes due to titration in consumption amidst the steep rise in consumer pricing and impact of ml-age reduction in certain packs. We expect volumes to pick up as the stress on the consumer wallet eases, driven by the seasonal moderation in copra prices from their current unprecedented highs. The brand recorded high teen revenue growth, aided by pricing interventions taken through the current year. Saffola Oils registered revenue growth in the twenties, led by pricing interventions implemented during the year. Value Added Hair Oils exhibited gradual improvement on a sequential basis led by mid and premium segments. The franchise is expected to continue an improving growth trajectory during the course of next year. Foods and Premium Personal Care (incl. digital-first brands) sustained their robust momentum and scaled up well-ahead of aspirations, thereby keeping the pace of diversification intact.

The International business delivered mid-teen constant currency growth driven by broad-based growth across most markets. Bangladesh continued to demonstrate strong resilience with doubledigit constant currency growth. MENA and South Africa continued their robust double digit growth momentum.

Consolidated revenue growth moved to high-teens on a year-on-year basis, as steady growth trends across key segments was supplemented by incremental pricing interventions in the domestic business. The consolidated business delivered low double-digit revenue growth on a full year basis, thereby meeting the aspiration set at the start of the year. We expect to maintain the double-digit revenue growth momentum in FY26.

Among key inputs, copra and vegetable oil prices remained firm at peak levels, while crude oil derivatives remained rangebound. The contraction in gross margin is expected to be largely in line with the preceding quarter. We also sustained aggressive investments in brand building in line with our strategic intent to continually strengthen the long-term equity of our franchises and accelerate diversification. Despite sharp input cost pressures and continued commitment towards A&P investments, we expect marginal operating profit growth on a year-on-year basis in this quarter.

The Company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and scale up of new engines of growth.

This update seeks to provide an overall summary of the operating performance and demand trends witnessed during the quarter ended 31st March, 2025. A detailed Information Update will follow this once the Board approves the financial results for Q4 FY25.

Shares of Marico Limited was last trading in BSE at Rs. 656.55 as compared to the previous close of Rs. 646.40. The total number of shares traded during the day was 21929 in over 1289 trades.

The stock hit an intraday high of Rs. 660.05 and intraday low of 644.90. The net turnover during the day was Rs. 14362889.00.

Source : Equity Bulls

Keywords

Marico INE196A01026 Q4FY25 BusinessUpdate