Consumer goods major Marico reported a nearly 20% year-on-year rise in consolidated net profit for Q2 FY25, reaching Rs 423 crore and surpassing market expectations. Bloomberg analysts had estimated net profit at Rs 389 crore.
Revenue for the quarter grew 7.6% year-on-year to Rs 2,664 crore, with underlying volume growth at 5% and price-led growth at nearly 3%. The reported revenue closely matched Bloomberg’s forecast of Rs 2,684 crore.
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Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 5% year-on-year to Rs 522 crore, just shy of Bloomberg’s Rs 530 crore estimate. Advertising and promotional expenses increased 8% year-on-year, leading to a 50 basis-point drop in Ebitda margins to 19.6%, down from 20.1% in the same quarter last year.
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Marico noted stable demand trends for the quarter, with rural markets growing at twice the pace of urban areas on a year-on-year basis. Price increases, particularly in hair oils, helped offset rising commodity costs.
The company also reported that over 80% of its portfolio either gained or maintained market share and penetration on a moving average total (MAT) basis. Marico expanded Project Setu, a direct distribution initiative launched in Q1 FY25, to four more states, bringing the total to 10. The initiative aims to enhance direct reach, market share, and assortment levels in urban and rural areas.
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“In addition to improved direct reach and weighted distribution, Project Setu will drive market share gains across categories in urban and rural markets, while enhancing assortment levels in urban stores, enabling diversification and premiumization in the domestic business,” the company said.
Marico added that it would continue leveraging pricing power across key brands to manage rising input costs.
Marico’s shares closed down 0.83% at Rs 628.80 on the BSE on Tuesday, even as the broader market gained.
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