Marico (MARICO) Q4 01/02 earnings summary

Executive summary

• FY02 consolidated sales and services rose 3.7% to Rs 6,956.5 million amid FMCG industry de-growth; PBT increased 15.4% to Rs 578.4 million.

• Consolidated PAT was Rs 500.6 million, up 9.4% YoY after a first-time deferred tax charge; before deferred tax, PAT grew 15.8% to Rs 529.6 million.

• New products reached 12% of turnover, up from 6% in FY01; FY03 turnover growth was expected to enter double digits, with PBT growth in line.

Financial highlights

• Consolidated FY02 revenue was Rs 6,969.5 million, including other income; operating expenses were Rs 6,391.2 million and PBT was Rs 578.4 million.

• Consolidated PAT was Rs 500.6 million vs Rs 457.5 million in FY01; EPS was Rs 34.52 vs Rs 31.55.

• Q4 FY02 revenue was Rs 1,886 million, PBT Rs 142 million and PAT Rs 124 million; Q4 FY01 figures were Rs 1,835 million, Rs 112 million and Rs 105 million.

• Operating cash flow was Rs 654.4 million; fixed-asset purchases were Rs 315.6 million and cash closed at Rs 102.2 million.

Outlook and guidance

• FY03 turnover growth was expected to reach double digits, supported by new products; PBT was expected to grow in line with turnover.

• Raw material prices were expected to be generally higher in FY03 than FY02.

• Bangladesh manufacturing was expected to be fully implemented by the end of H1 FY03, enabling local operations to meet domestic demand.