Marico gains after Q4 PAT rises 8% YoY to Rs 343 cr
Marico rallied 3.81% to Rs 724.10 after the company reported a 7.86% jump in consolidated net profit to Rs 343 crore in Q4 FY25 as compared with Rs 318 crore in Q4 FY24.
Revenue from operations increased 19.84% to Rs 2,730 crore during the quarter as compared with Rs 2,278 crore in Q4 FY24, with underlying volume growth of 7% in the India business and constant currency growth of 16% in the international business.
Profit before tax (PBT) rose 10.53% YoY to Rs 441 crore in Q4 FY25.
EBITDA stood at Rs 458 crore, recording growth of 4% YoY. EBITDA margin fell 260 bps to 16.8% in Q4 FY25.
During Q4, consumer sentiment remained stable amidst improving demand in rural and mixed trends among mass and premium urban segments. Both HPC and Foods segments exhibited steady growth vis-vis the preceding quarter.
India revenues stood at 2,068 crore, up 23% YoY, aided by price hikes in core portfolios in response to elevated input costs. Alternate channels continued to gain salience vis-vis General Trade.
On international business front, Bangladesh sustained its strong momentum, posting double-digit constant currency growth. Vietnam was muted amidst sluggishness in some of the key categories. MENA and South Africa continued their high-paced growth trajectory. The business charted a resilient topline and profitability performance despite the impact of currency headwinds in key markets (translating to ~2% impact on consolidated EBITDA in FY25).
Gross margin contracted by ~300 bps YoY, primarily impacted by 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.
On the outlook front, the company expects gradually improving growth trends in the core categories on the back of moderating trends in retail and food inflation as well as promise of a healthy monsoon season. This will be further aided by its ongoing initiatives to support select General Trade (GT) channel partners and transformative expansion in its direct reach footprint under Project SETU.
The company aims to grow Foods at 25%+ CAGR to around 8x of FY20 revenues (~2x of FY24 revenues) in FY27. The Digital-first portfolio clocked ARR of Rs 750 crore on exit basis in FY25, The company expects to scale this portfolio to ~2.5x of FY24 ARR (earlier ~2x of FY24 ARR) in FY27. Consequently, it expects the India revenue share of the foods and premium personal care portfolios to expand to ~25% by FY27.
The company expects gradual improvement in gross and operating margins of the Food portfolio as we scale up over the medium term. Among Digital-first brands, Beardo closed in on double-digit EBITDA margin this year. Plix delivered low single digit EBITDA margin this year. It aims to replicate this playbook and achieve double-digit EBITDA margin in the portfolio in FY27.
The company aims to expand into premium personal care categories such shampoos, skin care, hair styling/ care (ex-hair oils) and baby care. These portfolios have scaled at 24% CAGR over FY21-25 period and it aims to deliver 25%+ growth in the medium term.
We will continue to invest aggressively towards diversifying the portfolio, expanding the total addressable market and driving market share gains in each of the markets. We aim to maintain the double-digit constant currency growth momentum in the International business over the medium term, the company added in exchange filing.
Despite transient input cost headwinds in the near term, the FMCG company expects to sustain the double-digit revenue growth momentum and will strive to deliver double-digit operating profit growth in FY26. It also expects operating margin to inch up over the medium term with leverage benefits as well as premiumisation of the portfolios across both the India and International businesses.
Saugata Gupta, MD & CEO commented, said, The fiscal year 2024-25 has closed on a momentous note with consolidated revenues crossing the 10,000 cr. mark. As set out at the start of the year, we have met our double-digit revenue growth aspiration, backed by top quartile volume growth in the India business and robust growth in the International business. While the core portfolio continued to garner market share and penetration gains, the scale-up momentum in Foods and Digital-first brands continued to have a markedly positive impact on topline and bottomline growth.
In the International business, we have made visible strides towards building presence in premium personal care categories across markets, which is leading to broad-basing of the business. While we expect elevated input costs to be transient headwinds in the near term, we remain focused on leveraging the building blocks in place to deliver industry leading growth in FY26.
Meanwhile the companys board recommended final dividend of Rs 7 per equity share of Re 1 each, subject to approval of shareholders at the ensuing 37th Annual General Meeting (AGM). The record date was fixed as Friday, 1 August 2025. The said dividend, if approved by shareholders will be paid on or before Sunday, September 7, 2025.
Marico is one of India's leading consumer products companies, in the global beauty and wellness space. It sells products under brands such as Parachute, Saffola, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Pure Sense, Coco Soul, Revive, Set Wet, Livon, Beardo, Just Herbs etc.
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