Marico's Profit Rises by 20% in Q2, Rural Growth Surpasses Urban The company's revenue from operations increased 7.6 per cent annually to INR 2,664 crore in Q2FY25, from INR 2,476 crore in the same quarter last year
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In the second quarter of FY25, FMCG major Marico witnessed rural growth at double the pace of urban growth on a year-on-year (YoY) basis. In Q2FY25, Marico's profit jumped over 20.3 per cent YoY to INR 433 crore, as against INR 360 crore in the same quarter a year ago. The company's revenue from operations increased 7.6 per cent annually to INR 2,664 crore in Q2FY25, from INR 2,476 crore in the same quarter last year.
The domestic business maintained its volume growth trajectory on the back of healthy trends across most of the core and new franchises. Domestic revenue was INR 1,979 crore, up 8 per cent YoY, as volume growth was supplemented by price hikes in the Coconut Oil portfolio and favourable reversal in the pricing cycle in Saffola Oils. Alternate channels continued to gain salience vis-Ã -vis General Trade.
The International business exhibited persistent strength across all key markets, underpinned by strong fundamentals and enduring growth potential.
Gross margin expanded by 30 bps YoY, as the impact of higher input costs in the core portfolios of the domestic business was more than offset by healthy margin improvements in the digital-first franchises in India and international businesses. A&P spends were up 8 per cent YoY, as the company sustained investments towards strategic brand building. EBITDA margin stood at 19.6 per cent, down 50 bps YoY and EBITDA grew by 5 per cent YoY.
"We closed the first half of the fiscal on a fairly positive note with the growth trajectory of the business heading in the right direction. We have delivered healthy volume-led revenue growth in the domestic business buoyed by sustained market share and penetration gains across core portfolios. Foods and digital-first brands continued to ramp up impressively and reinforce the diversification agenda. The international business has exhibited remarkable strength despite challenging operating conditions in select markets. We will take calibrated pricing actions in response to the rising trend in input costs, while focusing on achieving our stated growth aspirations for the year," said Saugata Gupta, MD & CEO, Marico.
