During the quarter ended June 30, 2015, Marico posted revenue from operations of Rs 1,783 crore (USD 283 million) a growth of 10 per cent over Q1FY15. India business grew by 12 per cent and the international business grew by 4 per cent. The topline was driven by 6 per cent volume growth in India leading to overall volume growth of 5 per cent.
EBITDA at Rs 325 crore (USD 52 million) has grown by 22 per cent. EBITDA margins were at 18.2 per cent. Higher operating margins are attributed mainly to gross margin expansion led by softer inputs costs and phasing of advertising spends in key international markets. Profit After Tax for the quarter was Rs 238 crore (USD 38 million) and grew by 28 per cent.
During the quarter, International Consumer Products Corporation, the wholly owned subsidiary of the company in Vietnam, divested its entire stake in its subsidiary, Beauté Cosmétique Societé Par Actions. The divestment resulted in a gain of Rs 9.6 crore, which is included under “Other Income” in the published financials. The growth in Profit after Tax (excluding this one-time gain) was 24 per cent for the quarter.
In the India business, during the quarter, the company prototyped four new products in the market – three in Value Added Hair Oils and one in Leave-in Conditioners to fuel premiumisation of hair nourishment portfolio. These prototypes will be scaled up based on prototype results.
In the 2015 ‘Great Place to Work’ Institute study for India whose results were announced during the quarter, ranked Marico third in the FMCG sector. The company considers this a testimony to their continued efforts towards investing in its human capital and the culture of empowerment, transparency and openness.
Marico aspires to be an admired emerging market MNC with leadership in two core categories of nourishment and male styling in two continents – Asia and Africa. It has taken definitive steps to meet this aspiration by seeking to win amongst consumers, trade and talent. These initiatives are expected to bear fruit over the coming two to three years.
During 2014-15, Marico recorded a turnover of about Rs 57 billion (USD 940 Million) through its products sold in India and about 25 other countries in Asia and Africa.
The company holds a portfolio of brands such as Parachute, Parachute Advansed, Saffola, Hair and Care, Nihar, Nihar Naturals, Livon, Set Wet, Mediker and Revive. The international consumer products portfolio contributes to about 22 per cent of the group’s revenue, with brands like Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, and Thuan Phat.
Marico’s focus on sustainable profitable growth is manifest through its consistent financial performance, a CAGR of 18 per cent in turnover and 15 per cent in profits over the past five years.