Marico has released their revenue reports for the quarter ended September 30, 2015. During Q2FY16, Marico posted Revenue from Operations of Rs 1,485 crore (USD 228 million) a growth of 4 per cent over Q2FY15.
India business (Turnover of Rs 1127 crore) grew by 4 per cent in value terms and the international business (turnover of Rs 359 crore) remained flat in constant currency terms excluding the impact of divestment of Beauté Cosmétique Societé Par Actions (BCS) business in Q1 FY16.
The topline was driven by 5.5 per cent volume growth in India leading to overall volume growth of 4 per cent. The overall volume growth excluding divested BCS business was 5 per cent.
EBITDA at Rs 230 crore (USD 35 million) has grown by 18 per cent. EBITDA margins were at 15.5 per cent. The Company has judiciously utilised the benefits of lower commodity prices in improving pricing competitiveness, advertising inputs behind core categories and new products while also improving EBITDA Margins. Profit after Tax for the quarter was Rs 151 crore (USD 23 million) and grew by 27 per cent.
Marico’s rural and urban sales in the general trade segment grew by 3 per cent. Sales in Modern Trade (9 per cent of the domestic turnover) continued the good run with a growth of 13 per cent in Q2FY16. CSD and Institutional sales (7 per cent of the domestic turnover) grew at a healthy rate of 11 per cent in Q2FY16.
Company is observing the rural performance closely, given the subdued monsoon. Lower growths in both urban and rural were also impacted due to shift of festive season from Q2 last year to Q3 this year.
Marico’s International Business achieved a turnover of Rs 359 Crore (USD 55 million) during Q2FY16, remaining flat on constant currency basis. The operating margin (before corporate allocations) remained healthy at 17.3 per cent as against 16.8 per cent in Q2FY15. The Company will endeavour to maintain international margins in the region of 16-17 per cent and continue to invest and plough back savings to drive growth.
Marico won the “Best Domestic Company for Corporate Governance” across sectors in India in a poll conducted by Asiamoney.
There were a slew of Innovations prototyped in India and International markets and brand restages in International markets starting from September and these will continue in Q3 FY16.
Saugata Gupta, MD and CEO, Marico said, “In the India Business, we remain committed to deliver 8-10 per cent volume growth in medium term, although Q2 continued to face consumption headwinds. The international geographies are showing promise and signs of recovery. With a strong innovation pipeline and slew of brand restages in India and international markets we definitely expect the second half of this year to deliver much better growths compared to the first half. We will continue to focus on building the capability ahead of growth and believe that the results will follow.”