Marico Ltd on Friday reported 4% year-on-year (YoY) growth in its consolidated net profit at Rs 399 crore in the third quarter. The same stood at Rs 383 crore in the last year period. Revenue from operations in the same period increased 15% YoY to Rs 2,794 crore.
EBITDA for the third quarter rose 4% YoY to Rs 533 crore, while EBITDA margins were down 210 basis points to 19.1%.
Gross margins contracted 180 bps YoY in the third quarter, primarily impacted by the rising trend in copra and vegetable oil prices, which was only partly offset by pricing interventions in key portfolios.
The company reported an underlying volume growth of 6% in India and a constant currency growth of 16% in international business. Consolidated and domestic revenue growth, as well as underlying volume growth in the India business, stood at a 13-quarter high.
Marico said the FMCG sector continued to exhibit a steady demand sentiment during the quarter. “While urban sentiment was stable, rural maintained its relatively stronger momentum. Pricing growth for the sector visibly picked up given the backdrop of rising commodity prices,” the company said in a release.
The India business posted an uptick in underlying volume growth on a sequential basis, which was underpinned by a resilient performance across the core portfolios and scale-up of the new businesses.
Offtake growth remained strong as over 90% of the business either gained or sustained market share, and 80% of the portfolio either gained or sustained penetration, both on a MAT basis.
Domestic revenue was Rs 2,101 crore, up 17% YoY, led by price hikes in core portfolios in response to the sharp rise in input costs. Among channels, MT and E-commerce (including Quick Commerce) continued to lead with high double-digit volume growth, while GT was flattish.
The international business upheld its broad-based growth trajectory as most of the markets, except South East Asia, delivered in line with expectations. The business has continued to chart a resilient topline and profitable.
Dividend Declaration
In light of its positive financial performance, Marico’s board declared an interim dividend of ₹3.50 per equity share for FY25. The record date for this dividend is set for February 7, 2025, with payments expected by March 2, 2025.
This move reflects Marico’s commitment to returning value to its shareholders while continuing to invest in growth initiatives.