Consumer goods major Marico saw Q4FY25 net profit and revenue improve on the back of a demand uptick seen in rural markets. The maker of Saffola and Parachute reported an 8% year-on-year (y-o-y) growth in consolidated net profit to Rs 343 crore for Q4. Consolidated revenue for the period stood at Rs 2,730 crore, a growth of nearly 20% y-o-y. Bloomberg consensus estimates had pegged revenue and profit numbers at Rs 2,656 crore and Rs 337 crore, respectively, which compares favourably with the reported numbers.
Underlying volume growth in the India business, which contributes nearly 70-75% to overall revenue, stood at 7% for Q4, a 14-quarter high. Marico’s international business grew 16% y-o-y in constant currency (CC) terms for the period under review, it said.
The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) for the reported quarter stood at Rs 458 crore versus Rs 442 crore in the year-ago period, registering a 4% y-o-y growth, sluggish owing to inflationary pressures in copra and vegetable oil.
Both gross and Ebitda margins contracted in the quarter by 300 and 260 basis points each. Ebitda margins for the quarter stood at 16.8% versus 19.4% reported in the same period last year. Marico said it partially mitigated inflationary pressures by taking price hikes in hair oils.
However, the company added that retail and food inflation was gradually moderating, which augured well for overall consumption in FY26. Government schemes, rise in minimum support price of crops, a healthy monsoon forecast would aid ongoing rural recovery, it said. Ongoing initiatives to support select general trade and expand direct reach under Project Setu was expected to further enhance growth in FY26, Marico said.
For the full financial year, Marico’s bottom line jumped 8% to Rs 1,593 crore from Rs 1,470 crore in FY24. Meanwhile, the company’s topline grew 12% Rs 10,831 crore versus Rs 9,653 crore in FY24.
Advertising and promotional (A&P) spends were up 35% y-o-y in Q4 and up 18% y-o-y in FY25. This was in line with the company’s strategic intent of strengthening its franchise and accelerating diversification.
Marico also said it continued to draw confidence from healthy offtakes, penetration, and market share gains in its key portfolios. It further stated that it remained focused on driving differential growth in its urban-centric and premium portfolios through organised retail and e-commerce channels.