Marico, a leading consumer goods company, has announced its financial results for the third quarter (Q3) of the fiscal year 2024. Marico’s consolidated net profit for Q3 FY24 rose by 15.9% year-on-year, reaching ₹386 crore. This growth can be attributed to the strong performance of the company’s premium personal care segment. However, Marico’s revenue from operations experienced a slight decline of 1.94% during the quarter, amounting to ₹2,422 crore.
In the domestic market, Marico witnessed signs of improvement in its core portfolios. The company expects the steps taken to enhance the business prospects of the GT (general trade) channel to contribute to further growth. Marico’s premium personal care product category also recorded double-digit growth in Q3 FY24, reflecting the increasing demand for branded and higher-priced personal care goods among Indian consumers.
On the international front, Marico’s business remained resilient despite transient headwinds. The company anticipates a healthy growth momentum in its international operations. In Bangladesh, Marico experienced a decline in constant currency growth due to macroeconomic challenges. However, the company expects the business performance in Bangladesh to revert to a healthy trajectory in the coming quarter. Marico’s South-East Asia, MENA (Middle East and North Africa), and South Africa markets showed positive growth in Q3 FY24.
In Q3 FY24, total expenses amounted to ₹1,970 crore, reflecting a 4.7% decrease compared to the corresponding period last year. EBITDA (earnings before interest, tax, depreciation, and amortisation) witnessed a notable increase, reaching ₹513 crore, marking a 12.5% growth. The EBITDA margin also demonstrated improvement, rising to 21.2% in Q3 FY24 from 18.5% in the previous year. The expansion of the gross margin by 634 basis points year-on-year was attributed to softer input costs and a favourable portfolio mix.
RTM Watch’s Take
Marico’s Q3 FY24 results reflect a positive growth trajectory for the company, with a significant increase in net profit despite a slight decline in revenue. The strong performance of the premium personal care segment and the resilience of the international business are key highlights. Marico’s focus on improving the business prospects of the GT channel and its portfolio diversification through foods and premium personal care are expected to drive future growth. The company’s commitment to delivering its highest-ever operating margin this year and maintaining a resilient margin profile in the quarters ahead demonstrates its confidence in sustained profitability.
