Marico's ad spends up by 5.78% YoY to Rs 842 crores in FY23

Marico has reported a 5.78% spike in its spending on ad and sales promotion in FY23 as it allocated Rs 842 crore during FY23, up from last year’s Rs 796 crore it had spent throughout FY22.

However, on a quarterly basis, the FMCG player reduced its ad spends by 4.54% YoY in the fourth quarter of the fiscal year, wherein it had spent Rs 210 crore, juxtaposed with the corresponding period of the previous fiscal where it spent Rs 220 crore.

The net profit of the FMCG player also grew by 5.34% YoY as it clocked in Rs 1,322 crore in the fiscal year ended March 31, 2022, as compared to Rs 1,255 crore it earned in the previous fiscal.

Marico’s net profit in Q4 of FY23 also dropped by 8.41% YoY to Rs 305 crore, as against Rs 333 crore it clocked in during the last quarter of the previous fiscal year.

Overall, the FMCG major’s total expenses, inclusive of ad and sales promotion amongst others, were also down by 7.74% as the company spent Rs 1,907 crores in FY23’s Q4, compared to Rs 2,067 crores it spent in Q4 of FY22. 

In terms of the whole of FY23, Marico’s total expenses were marginally up by 1.95% at Rs 8165 crores, from the previous fiscal year’s Rs 8009 crores.

On the other hand, the consolidated revenue from operations of the FMCG major in Q4 stood at Rs 2,308 crore in FY23, down 8.05% YoY from last fiscal year’s  Rs 2,510 crore. However, in terms of the fiscal ended March 31, 2023, the same was up 3.10% YoY at Rs 9,908 crore as compared to FY22’s Rs 9,610 crore.

Additionally, the company also extended the tenure of Saugata Gupta, MD and CEO, Marico, for another two years along with onboarding Rajan Bharti Mittal, Vice-Chairman, Bharti Enterprises, as an independent director for a period of five years.

Gupta commented, “FY23 ended on a reassuring note with improving trends across all performance parameters, accompanied by indications of a gradual sectoral recovery. The domestic business delivered a far more broad-based growth with visibly positive results in the portfolio diversification journey, while the international business continued to reinforce its underlying strength amidst a challenging operating environment. As we move into next year, we expect the pace of growth in volumes, revenues and earnings to move in the right direction, aided by an evolving portfolio of entrenched and budding franchises, distribution expansion and adequate investments in market development and brand building.”

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