Marico (MARICO) Q4 02/03 earnings summary

Executive summary

• FY03 consolidated sales and services rose 11% to Rs 7,755m; PBT increased 11% to Rs 640m and PAT increased 12% to Rs 562m.

• New-product momentum, international growth and expansion into skin-care businesses advanced portfolio diversification; safflower shortages and a subdued economy constrained some established businesses.

Financial highlights

• Consolidated PAT was Rs 562.2m versus Rs 500.6m in FY02; basic and diluted EPS was Rs 18.99 versus Rs 17.26.

• Cash profits reached Rs 783m; the 10-year highlights show FY03 sales and services of Rs 7,755m and PBT of Rs 640m.

• New products contributed Rs 1,320m, or 17% of turnover, versus 11% in FY02; new-product turnover grew 63%.

Outlook and guidance

• FY04 was framed as a period of substantial investment in new businesses, products and flagship-brand consolidation; topline support may precede bottom-line benefits.

• Kaya planned significant clinic expansion in FY04, with investment expected to continue for several quarters and into early FY05.

• Sundari's priority for FY04 was to turn around the business and establish a sound basis for future profits; its investment phase was expected to continue near term.

• International growth would focus on SAARC and Gulf markets while prototyping new offerings; ROCP strategy prioritized higher-end blends and Sunflower Oil margins over volume.