Marico (MARICO) Q1 24/25 earnings summary

Executive summary

• Domestic demand showed green shoots, with rural growth outpacing urban and premium segments outperforming mass segments.

• Consolidated revenue grew 7% year-over-year in Q1 FY25, driven by improving volumes and favorable pricing.

• Foods and digital-first brands delivered robust growth, with international business maintaining double-digit constant currency growth.

• Over 90% of domestic business gained or sustained market share and penetration on a MAT basis.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, with results reviewed by the Audit Committee and statutory auditors.

Financial highlights

• Q1 FY25 consolidated revenue: ₹2,643 crore, up 7% year-over-year; EBITDA: ₹626 crore, up 9% year-over-year.

• Domestic revenue grew in high single digits, aided by price hikes in the coconut oil portfolio and stable Saffola oil pricing.

• Foods registered 37% growth, with core oats portfolio growing over 20%.

• Operating margin for Q1 FY25 exceeded 23%, with gross margin expanding by ~230 bps year-over-year.

• Net profit attributable to owners for Q1 FY25 was ₹464 crore, compared to ₹427 crore in Q1 FY24.

Outlook and guidance

• Expectation of double-digit consolidated revenue growth for FY25, driven by category outperformance, market share gains, and favorable pricing.

• Margins are expected to be held at FY24 levels, with no further expansion anticipated this year.

• Foods and premium personal care portfolios targeted to exceed 25% of revenue by FY27, with foods portfolio targeted to double FY24 scale by FY27.

• Digital-first brands expected to achieve double-digit EBITDA margin and 2x ARR by FY27.

• Project SETU to drive direct reach from 1mn to 1.5mn outlets by FY27, supporting profitable growth and market share gains.