In This Article:
-
India Business Revenue Growth: High-teens revenue growth.
-
Market Share: Over 90% of the business gained or sustained market share.
-
Food Business ARR: Scaled up to around INR 1,000 crore in Q3.
-
Digital First Brands ARR: Combined ARR of around INR 1,900 crore.
-
International Business Growth: Sustained double-digit constant currency growth.
-
Currency Headwinds Impact: 2% impact on consolidated EBITDA.
-
Bangladesh Business: Delivered robust growth.
-
MENA Growth: Strong growth and aggressive market share gains.
-
Consolidated Revenue Growth: Reached a 13-quarter high.
-
Profitability Pressure: Transient pressure due to higher-than-expected inflation.
Release Date: January 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Marico Ltd (BOM:531642) reported a robust high-teens revenue growth in its India business, with over 90% of the business gaining or sustaining market share.
-
The company's food business scaled up to around INR1,000 crore ARR in Q3, achieving a significant milestone set in 2020.
-
The international business sustained its double-digit constant currency growth momentum, with strong performances in Bangladesh, MENA, and South Africa.
-
Marico Ltd (BOM:531642) is on track to achieve double-digit consolidated revenue growth for the full year, despite a challenging inflationary environment.
-
The company has successfully diversified its portfolio, with the composite revenue share of Food, Premium Personal Care, and Digital First brands in the domestic business standing at 21% for nine months FY25.
Negative Points
-
Urban demand remained stable yet soft, with middle and bottom of pyramid segments subdued by inflation and slow wage growth.
-
The GT channel has been sluggish due to evolving inter-channel dynamics and shifts in consumer behavior.
-
The company faced a 2% impact on consolidated EBITDA due to currency headwinds in key international markets.
-
There is significant competition in the True Elements segment, with both legacy and startup companies posing challenges.
-
The company is experiencing transient pressure on profitability due to higher-than-expected inflation, particularly in copra prices.
Q & A Highlights
Q: Can you provide insights on the distribution scale-up for Plix and True Elements, and how competitive intensity is affecting these brands? A: Saugata Gupta, CEO, explained that Plix is profitable with minimal cash burn, and True Elements has a low burn rate. The focus is on sustainable growth rather than aggressive expansion. The strategy involves creating a differentiated portfolio for general trade (GT) and maintaining a healthy cash margin. Despite competition, there is significant growth potential in the market for both brands.