Marico Ltd. reported a stronger-than-expected performance for the June quarter, with net profit rising 25% year-on-year to Rs 630 crore, driven by healthy volume growth across its India business, resilient international demand and improved operating margins.
The FMCG major's consolidated revenue rose 22.9% to Rs 3,957 crore during the quarter, nearing the Rs 4,000-crore mark, while EBITDA increased 25% to Rs 819 crore. EBITDA margin expanded to 20.7% from 20.3% a year earlier.
The company outperformed Bloomberg consensus estimates across key parameters. Analysts had expected net profit of Rs 581 crore, revenue of Rs 3,940 crore, EBITDA of Rs 762 crore and an EBITDA margin of 19.4%.
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Marico said advertisement and promotional spending increased 25% during the quarter as it continued investing behind its brands.
The India business grew 21% year-on-year, while the international business expanded 29%. Domestic volumes grew 11%, the highest in the last 20 quarters, while the international business delivered 15% constant-currency growth.
Within its portfolio, Parachute recorded 10% volume growth, its strongest performance in 20 quarters. Value Added Hair Oils (VAHO) posted 23% value growth and 10% volume growth, while contributing 18% to India's revenue. Saffola Foods registered 43% value growth, though the broader Safola franchise reported high single-digit volume decline with 7% value growth.
On the outlook, the company said it aims to deliver double-digit revenue growth in FY27 to cross the Rs 15,000-crore revenue milestone, along with high-teen EBITDA growth.
"We expect to deliver high single-digit volume growth in the India business and mid-teens constant currency growth in the International business," the company said.
Commenting on the operating environment, Marico said domestic economic activity remains resilient, supported by private consumption. However, it cautioned that global supply chain disruptions have led to an uptick in inflation, while the progression of the monsoon remains a key monitorable. The company also noted that softer copra prices are helping offset crude-linked inflationary pressures.
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