Marico’s Q3 ad spends surge 19% YoY to Rs 293 crore

So far in FY2025, Marico has spent Rs 823 crore on advertising, surpassing the Rs 726 crore spent in the first nine months of FY2024

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New Delhi: Homegrown FMCG major Marico, which owns popular brands like Saffola, Parachute, and Livon, reported a 19% increase in advertisement and sales promotion expenses, reaching Rs 293 crore in Q3 FY2025, compared to Rs 246 crore in the same quarter last year.

In the September quarter, the company’s ad spend stood at Rs 290 crore.

So far in FY2025, Marico has spent Rs 823 crore on advertising, surpassing the Rs 726 crore spent in the first nine months of FY2024.

The FMCG major reported a 5.18% in consolidated net profit to Rs 406 crore for the December quarter ended 2024, in which the Mariwala-led firm reported a volume growth from the domestic market and good performance from its International business.

It had posted a net profit of Rs 386 crore in the October-December quarter a year ago, according to a regulatory filing by Marico.

Marico's consolidated revenue from operations was up 15.35% to Rs 2,794 crore during the quarter under review. It was at Rs 2,422 crore a year ago.

The revenue growth was led "with underlying volume growth of 6% in the India business and constant currency growth of 16% in the international business," said Marico in its earning statement.

However, its gross margin "contracted by 180 bps Y-o-Y, primarily impacted by the rising trend in copra and vegetable oil prices," which was only partly offset by pricing interventions in key portfolios.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was up 4%, as EBITDA margin stood at 19.1%, down 210 bps," it said total expenses of Marico, increased 17.66% in the December quarter to Rs 2,318 crore.

Marico's total income, which includes other income, was up 15.05% to Rs 2,836 crore in the December quarter.

Commenting on the results MD & CEO Saugata Gupta, said, "We have delivered a considerably resilient performance in this quarter with the highest underlying volume and revenue growth in 13 quarters." "The core domestic portfolios have held firm amidst inflationary conditions and witnessed market share and penetration gains, with the accelerated scale-up in Foods and Digital-first brands visibly advancing the diversification agenda," he said.

In the December quarter, the domestic revenue of Marico was up 17.17% to Rs 2,101 crore. This growth was led by price hikes in core portfolios in response to the sharp rise in input costs, it added.

"The India business posted an uptick in underlying volume growth on a sequential basis, which was underpinned by a resilient performance across the core portfolios and scale-up of the new businesses," said Marico.

During the quarter, offtake growth remained strong as over 90% of the business either gained or sustained market share and 80% of the portfolio either gained or sustained penetration.

Among channels, MT and E-commerce, including Quick Commerce continued to lead with high double-digit volume growth, while the traditional GT channel which mainly comprises neighbourhood kirana shops was flattish.

Marico's revenue from the international market was up 10.17% to Rs 693 crore.

Its Bangladesh business posted 20 per cent CCG (Constant Currency growth), amidst a challenging macro environment.

"The fundamentals and medium-term growth construct of the business remain intact," it said.

Its MENA (Middle East and North Africa) delivered 35% CCG with broad-based growth in the Gulf region and Egypt. South Africa registered 17% CCG with both the Hair Care and Health Care franchises faring well.

While South East Asia business had a soft quarter, Marico added.

In the India business, Marico's Parachute business registered 3% volume growth and recorded 15 per cent revenue growth, aided by pricing hikes taken during this year.

While its Saffola Edible Oils delivered a low-single-digit volume growth amidst the sharp rise in vegetable oil prices. The brand posted 24% revenue growth, led by price hikes taken over the last few months.

Value-Added Hair Oils business, which includes Hair & Care, Nihar and Coco Soul - declined by 2 per cent in value terms.

Its foods business posted 31% value growth YoY, nearing Rs 1,000 crore Annual run rate (ARR) in Q3.

"Saffola Oats delivered double-digit growth, while the newer franchises fared healthily. True Elements and the plant-based nutrition portfolio of Plix maintained their accelerated growth momentum," it said.

Premium Personal Care also continued its strong run during the quarter. The digital-first portfolio, comprising Beardo, Just Herbs and the personal care portfolio of Plix, scaled ahead of expectations to reach Rs 600 crore in ARR in Q3.

"The composite revenue share of Foods and Premium Personal Care (including Digital-first brands) in the domestic business stood at 21% in 9MFY25 (April-December)," said Marico.

Over the outlook, Marico said it expects gradually improving growth trends in the core categories of its domestic business, amidst the stable macro backdrop "We also continue to draw confidence from healthy offtakes, penetration and market share gains in our key portfolios," said Marico adding in the medium term, it aims to deliver double-digit revenue growth.

Meanwhile, in a separate filing, Marico said its board in a meeting held on Friday declared an interim dividend of 350%, which is Rs 3.50 per equity share of Re 1 each for the Financial Year 2024-25.

Saffola Marico ad spends ad spend Parachute Livon
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