Marico Q4 Results: Profit rises 8% to ₹343 crore, volume growth beats estimates; dividend declared

Mint

02-05-2025

Marico, a leading player in India's consumer products sector with a focus on hair and wellness, announced its March quarter results post-market hours today, May 02, reporting a mixed performance. The company reported volume growth of 7% in its India business, which was higher than analyst estimates of 5–6%.
It also reported constant currency growth of 16% in the international business. Consolidated and India revenue growth, as well as underlying volume growth in the India business, stood at a 14-quarter high, as per the company's earnings filing.
The company stated that its India business continued to deliver sequential improvement in volume growth during the quarter. It witnessed the transient impact of hyperinflation and resultant steep price increases in core portfolios but maintained robust momentum in its new businesses.
Offtakes remained strong, with 95% of the business gaining or sustaining market share and 80% gaining or sustaining penetration, both on a MAT basis. India's revenues stood at ₹ 2,068 crore, up 23% YoY, aided by price hikes in core portfolios in response to elevated input costs.
The international business delivered another stellar quarter and closed ahead of the company's internal targets. However, gross margin contracted by 300 basis points YoY, primarily due to the rise in copra and vegetable oil prices, which was partly offset by pricing interventions in key portfolios.
A&P spends were up 35% YoY in Q4 (and up 18% in FY25), in line with the company's strategic intent to continually strengthen its franchises and accelerate diversification. Consequently, EBITDA rose 4% to ₹ 458 crore, with EBITDA margin at 16.8%, down 260 basis points. Net profit increased 8% YoY to ₹ 343 crore.
For FY25, revenue from operations stood at ₹ 10,831 crore, up 12% YoY, with underlying volume growth of 5% in the India business and constant currency growth of 14% in the international business. Profit for FY25 stood at ₹ 1,629 crore, marking a 10% YoY increase.
At its meeting held on May 02, 2025, the Board of Directors recommended a final dividend of ₹ 7 per equity share of ₹ 1 each on its paid-up equity share capital of approximately ₹ 129.5 crore.
Marico expects gradually improving growth trends in the core categories of its India business, supported by moderating retail and food inflation and the forecast of a healthy monsoon season.
The company believes this will be further aided by its ongoing initiatives to support select General Trade (GT) channel partners and the transformative expansion of its direct reach footprint under Project SETU.
Marico also said it continues to draw confidence from healthy offtakes, penetration, and market share gains in its key portfolios. It further stated that it remains focused on driving differential growth in its urban-centric and premium portfolios through organized retail and e-commerce channels.