Marico (MARICO) Q4 03/04 earnings summary

Executive summary

• FY04 consolidated revenue rose 15% to Rs. 8,888 million; PAT increased 5% to Rs. 590 million, extending the record to 14 consecutive quarters of YoY turnover growth and 18 of profit growth.

• Growth came alongside a portfolio shift toward higher-margin products, stronger category shares, new-product launches, and the establishment of Kaya and Sundari.

Financial highlights

• Consolidated sales and services were Rs. 8,888 million vs. Rs. 7,755 million; PBT was Rs. 651 million vs. Rs. 640 million, and PAT was Rs. 590 million vs. Rs. 562 million.

• Consumer Products sales and services rose 13% to Rs. 8,796 million; PBT increased 14% to Rs. 733 million and PAT 19% to Rs. 672 million.

• Consolidated pre-bonus EPS was Rs. 19.43 vs. Rs. 18.99; post-bonus EPS was Rs. 9.71 vs. Rs. 9.49.

• New products in the Consumer Products portfolio reached annualized turnover of Rs. 1,500 million, about 18% of its sales; new products and businesses together reached Rs. 1,600 million annualized turnover, about 18% of consolidated turnover.

Outlook and guidance

• FY05 plans included continued Kaya investment through new clinics and services; the stated saturation strategy could double the number of Kaya clinics in India before expansion to other cities.

• Sundari was expected to remain in the investment phase; newer spa and internet channels, cost rationalisation, and international distribution were being developed.

• Priorities were higher-margin portfolio realignment, sustained volume growth, brand building, international expansion, and continued development of prototypes and new businesses; growth momentum was expected to continue near term.