In a noteworthy financial performance, Marico has reported a significant uptick in its business segment, particularly in India, where it generates approximately 70-75% of its total revenue. For the fourth quarter, the company achieved an impressive 7% growth in underlying volume, marking the highest level in 14 quarters. Additionally, Marico’s international operations saw a robust 16% year-on-year growth when measured in constant currency.

Impressive Earnings Amidst Challenges

For the reported quarter, Marico’s earnings before interest, tax, depreciation, and amortization (EBITDA) reached Rs 458 crore, up from Rs 442 crore in the same quarter last year, reflecting a 4% year-on-year increase. However, the growth was somewhat tempered by the ongoing inflationary pressures affecting copra and vegetable oil prices.

• EBITDA Margins: The margins experienced a contraction of 300 basis points in gross and 260 basis points in EBITDA, bringing the EBITDA margin down to 16.8% from 19.4% in the previous year. To partially counteract these inflationary effects, Marico implemented price hikes in its hair oil products.

Optimism for Future Consumption

Marico remains optimistic about the upcoming fiscal year (FY26), as it notes that retail and food inflation are showing signs of moderation. This trend is expected to positively influence overall consumption. Government initiatives, including an increase in the minimum support price for crops and favorable monsoon forecasts, are anticipated to boost rural recovery. The company is also focusing on its Project Setu, which aims to enhance general trade and direct reach, further propelling growth in FY26.

For the fiscal year as a whole, Marico’s net profit grew by 8%, rising to Rs 1,593 crore from Rs 1,470 crore in FY24. The company’s revenue also climbed, with a 12% increase, reaching Rs 10,831 crore, compared to Rs 9,653 crore in FY24.

Increased Investment in Marketing

In line with its strategic goals, Marico ramped up its advertising and promotional expenditures, which surged by 35% year-on-year in the fourth quarter and 18% year-on-year for the entire fiscal year. This investment is part of the company’s plan to fortify its brand and diversify its offerings.

Marico expressed confidence in its strong sales performance, market penetration, and gains in market share across key product lines. The company remains committed to fostering growth in urban and premium segments through enhanced organized retail and e-commerce strategies.

In summary, Marico’s recent financial results reflect a company that is not only weathering economic challenges but is also positioning itself for future growth through strategic investments and operational initiatives.