Marico, the FMCG company, reported a Q3FY24 profit of Rs 386 crore, marking a 15.9 per cent increase compared to Rs 333 crore in the third quarter of FY23, surpassing estimates.
The revenue from operations stood at Rs 2,422 crore, reflecting a 1.9 per cent decrease, with underlying volume growth of 2 per cent in the domestic business and constant currency growth of 6 per cent in the international business. In the corresponding quarter of the previous year, the revenue was Rs 2,470 crore.
Marico’s EBITDA for the quarter reached Rs 513 crore, showing a 12.5 per cent year-on-year increase. Despite stable demand trends with no significant improvement from the preceding quarter, rural demand remained soft, while urban demand maintained its moderate growth trajectory.
Within the FMCG sector, mass home and personal care categories closely followed the rural demand trajectory, while packaged foods led the sector due to higher urban salience and penetration-led growth. General Trade faced challenges, leading to a drag on growth, while alternate channels experienced healthy growth.
To address the challenges in the General Trade channel, Marico implemented measures at the end of Q3 to alleviate ROI challenges faced by channel partners, potentially paving the way for a structural recovery in the channel’s growth prospects.
In response to the extended slowdown and to support General Trade channel partners, Marico initiated a stock reduction across key portfolios, leading to a sequential dip in volume growth. Domestic revenue stood at Rs 1,793 crore, reflecting a 3 per cent decline on a year-on-year basis, lagging volume growth due to pricing corrections in key portfolios.
The International business reported mid-single-digit constant currency growth, affected by transient macroeconomic headwinds in Bangladesh, while other regions delivered a resilient performance. Despite challenges, Marico remains optimistic about its growth prospects in the dynamic market landscape.
