May 6th 2024.
Marico Ltd, a leading Indian FMCG company, has recently announced its financial results for the fourth quarter ended March 2024. According to the company's regulatory filing, their consolidated net profit has increased by 4.9% to Rs 320 crore, compared to Rs 305 crore in the same quarter last year. Their consolidated revenue from operations has also seen a growth, reaching Rs 2,278 crore in the fourth quarter.
The company reported that their total expenses were lower in the fourth quarter, amounting to Rs 1,894 crore, as opposed to Rs 1,907 crore in the previous year. In terms of business performance, Marico saw a 3% growth in domestic business and a 10% growth in international business, measured in constant currency. They also noted that premium and urban-centric segments performed better than rural and mass segments in various FMCG categories.
The company mentioned a positive change in rural sentiment towards the end of the quarter. They also observed that alternative channels have gained more prominence compared to general trade, which has been facing challenges in terms of profitability. On the international front, Marico experienced strong growth in Bangladesh, recovering from temporary setbacks in the previous quarter, and also saw significant growth in MENA and South Africa.
For the entire fiscal year ended March 2024, Marico reported a consolidated net profit of Rs 1,502 crore, marking a growth of 13.62% from the previous year. Their consolidated revenue from operations stood at Rs 9,653 crore, slightly lower than Rs 9,764 crore in the previous fiscal.
Saugata Gupta, Managing Director and CEO of Marico Ltd, expressed his satisfaction with the company's performance in the past fiscal year. He highlighted their highest-ever annual operating margin and sequential improvement in both domestic and international businesses. Looking ahead, Gupta expects a gradual improvement in the growth trajectory of core categories in the domestic market through initiatives to enhance the profitability of their general trade channel partners and expansion of their direct reach through Project SETU. The company aims to increase their direct reach from 1 million outlets to 1.5 million outlets over the next three years.
Gupta also mentioned the positive growth potential in their Bangladesh, MENA, and South Africa businesses. He believes that the company will continue to deliver healthy revenue-led earnings growth in the near and medium-term, aided by a favorable operating environment. Marico is optimistic about the future, especially with improving macro-indicators and a normal monsoon forecast. They expect a gradual uptick in the growth of their core categories and anticipate their domestic revenue growth to outpace volume growth in the first quarter of the current fiscal year.
In conclusion, Marico Ltd has ended the fiscal year 2023-24 on a promising note and is confident in their future growth prospects. They remain focused on enhancing their profitability and expanding their reach, both in the domestic and international markets.
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