Marico (MARICO) Q4 98/99 earnings summary

Executive summary

• FY99 total revenue was Rs. 5,530.8 million, up 12.5% YoY; growth accelerated to 15.5% in H2 from 9.1% in H1.

• Profit before tax rose 20.7% to Rs. 440.3 million; net profit increased 24.9% to Rs. 375.1 million, with FY98 including a Rs. 26 million non-recurring expense.

• Focus remained on value-added products, brand extensions, distribution expansion and growth through alliances and acquisitions.

Financial highlights

• Sales and services were Rs. 5,512.1 million versus Rs. 4,900.2 million; total revenue including other income was Rs. 5,530.8 million versus Rs. 4,915.8 million.

• PBT was Rs. 440.3 million versus Rs. 364.9 million; net profit was Rs. 375.1 million versus Rs. 300.4 million.

• Operating profit before working-capital changes rose 14.5% to Rs. 529.8 million; cash generated from operations was Rs. 342.0 million versus Rs. 573.6 million.

Outlook and guidance

• Plans prioritize value-added businesses, new product launches and market expansion to sustain or improve position in competitive FMCG markets.

• Bangladesh was identified for a proposed wholly owned subsidiary with local manufacturing; Middle East expansion and new-market entry also remain priorities.

• Distribution expansion is planned across towns and villages with populations above 5,000, alongside investment in sales productivity and IT connectivity.