Marico Ltd Reports 8.71% Rise in Q1 Net Profit

Homegrown FMCG major Marico Ltd reported an 8.71% increase in consolidated net profit for Q1, reaching Rs 474 crore, driven by volume gains and gross margin expansion. Revenues increased by 6.7% to Rs 2,643 crore. Both domestic and international businesses showed growth, with various segments gaining market share.

Homegrown FMCG major Marico Ltd on Monday reported an 8.71 per cent rise in consolidated net profit to Rs 474 crore for the first quarter ended June 30, driven by volume gains and gross margin expansion.

The company had posted a net profit of Rs 436 crore a year ago, according to a regulatory filing by Marico.

Consolidated revenue from operations for the quarter rose 6.7 per cent to Rs 2,643 crore, compared to Rs 2,477 crore in the year-ago period. Marico's domestic business saw a notable 4 per cent volume growth and a 10 per cent growth in constant currency for international operations.

The gross margin expanded by 230 basis points year-on-year, with advertising and promotion spending climbing 13 per cent. Total expenses grew by 6.08 per cent to Rs 2,075 crore in the June quarter.

Popular brands like Saffola, Parachute, and Livon are under Marico's ownership. The company's total income rose by 6.22 per cent to Rs 2,680 crore, and domestic revenue increased 7.38 per cent to Rs 1,962 crore, buoyed by price hikes in the Coconut Oil portfolio.

Marico's international revenue grew 4.76 per cent to Rs 681 crore, sustaining its double-digit constant currency growth momentum. The FMCG sector in India is showing gradual improvement, particularly in rural markets, while urban areas remain stable.