Marico Ltd, has reported a first-quarter profit of Rs 474 crore, up 8.7% from Rs 436 crore in the same quarter last year. Revenue from operations increased by 6.7% to Rs 2,643 crore from Rs 2,477 crore, with domestic business volume growth of 4% and international business growth of 10% in constant currency terms. EBITDA for the quarter was Rs 626 crore, up 9.1%.
Marico’s gross margin improved by 230 basis points due to lower input costs and a better product mix. The company also increased its advertising and promotion spending by 13% to focus on building its core and new brands.
Marico observed gradual improvement in FMCG volume trends in India, with rural areas showing more promise than urban areas. Domestic revenue reached Rs 1,962 crore, up 7%, driven by price hikes in the Coconut Oil portfolio, which offset price cuts in the Saffola Oils portfolio.
The international business continued its strong growth, with Bangladesh achieving 10% constant currency growth. South-East Asia remained flat, MENA grew by 20%, and South Africa saw a 28% increase driven by ethnic hair care.
During Q1, Parachute Rigids saw a 2% volume growth. Value-Added Hair Oils declined by 5% due to sluggish demand and competition. Saffola Edible Oils had mid-single digit volume growth, and the Foods segment posted 37% growth. Premium Personal Care products also saw strong growth. Marico expects revenue growth to continue improving throughout the year, driven by better domestic volume growth, favorable pricing, and strong international business performance.
