Marico (MARICO) Q2 24/25 earnings summary

Executive summary

• Achieved sequential improvement in domestic volume growth, with over 80% of business gaining or sustaining market share and penetration year-over-year.

• Consolidated revenue grew 8% year-over-year in Q2 FY25, with domestic revenue up 8% and international constant currency growth at 13%.

• Foods business surpassed INR 1,000 crore annual run rate in Q2, with strong growth in premium personal care and digital-first brands.

• International business maintained robust double-digit growth, with resilience in Bangladesh and strong performance in Vietnam, MENA, Gulf, Egypt, and South Africa.

• The company completed the acquisition of the remaining 40% stake in Apcos Naturals (Just Herbs), making it a wholly owned subsidiary.

Financial highlights

• Q2 FY25 revenue from operations was ₹2,664 crore, up 8% year-over-year; H1 FY25 revenue was ₹5,307 crore, up 7%.

• Q2 EBITDA was ₹522 crore (up 5% YoY), with an EBITDA margin of 19.6% (down 50 bps YoY); H1 operating margin held at 21.6%.

• Q2 reported PAT was ₹423 crore (up 20% YoY); recurring PAT was ₹388 crore (up 10% YoY); H1 FY25 net profit was ₹907 crore.

• Foods segment recorded 28% growth, with Saffola oats growing in mid-teens and new launches like Saffola Masala Millets.

• Dividend from Bangladesh subsidiary contributed INR 231 crore to standalone other income.

Outlook and guidance

• Consolidated revenue growth expected to move into double digits in H2 and for the full year, contingent on continued domestic volume growth.

• Foods and premium personal care portfolios targeted to grow at 20%-25%+ CAGR, with digital-first brands aiming for double-digit EBITDA margin by FY 2027.

• International business to retain double-digit constant currency growth momentum, with broad-basing beyond Bangladesh.

• Recent acquisitions, including Just Herbs, are expected to contribute to future performance.