Marico (MARICO) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated revenue from operations rose 7% to ₹6,333 crore; underlying volume growth was 1.3%, and PAT increased 2% to ₹814.5 crore.

• More than 90% of the portfolio gained market share, while high copra costs, GST-related trade disruption and weak Saffola edible oils weighed on results.

Financial highlights

• Consolidated EBITDA was ₹1,137.8 crore, with an 18.0% margin versus 19.5% in FY17; PAT margin was 12.9% versus 13.5%.

• Revenue from operations was ₹6,333.1 crore versus ₹5,935.9 crore; net profit attributable to owners was ₹814.5 crore versus ₹798.6 crore.

• Q4 FY18 revenue including other income was ₹1,503.0 crore; net profit attributable to owners was ₹180.6 crore versus ₹168.7 crore in Q4 FY17.

• Consolidated operating cash flow was ₹554.5 crore versus ₹648.7 crore; cash and cash equivalents closed at ₹50.6 crore.

Outlook and guidance

• India FY19 and beyond target: 8–10% volume growth and healthy share gains; Parachute Rigids retain a 5–7% medium-term volume growth target.

• International organic topline growth target is 12–15% in constant currency near to medium term, with 16–17% operating margins; consolidated medium-term topline target is ~15% plus, depending on inflation.

• Consolidated medium-term operating margin guidance is 17–18%; near-term profit growth may be low as growth investment takes priority.

• FY19 capex is expected at ₹125–150 crore; copra prices were expected to remain firm in H1 FY19 and soften in H2.