Marico reported consolidated revenues of Rs 2,470 crore, 2.6% YoY increase against Rs 2,407 crore, corresponding quarter previous year. Domestic revenues came in at Rs 1,851 crore up 2% YoY in Q3FY23.
International revenues (Rs 619 crore), 25% of total revenue base reported 8% YoY constant currency growth in Q3FY23. Volume growth for December Quarter 2022 was 4% for Marico. Marico’s volume growth is lower than HUL, but far better than Dabur in Q3FY23.
Net profit for December Quarter 2022 jumped 6% YoY to Rs 328 crore. Operating margins came in at 18.5% in Q3FY23, a six-quarter high. Operating margins expanded 55 basis points (bps) YoY supported by stability in raw material pricing and improved portfolio mix.
Marico has three main revenue segments, Parachute Coconut Oils, Saffola Franchise (edible oil & foods) and Value Added Hair Oils. Parachute segment reported 2% YoY volume growth in Q3FY23. According to the management, after tepid last few quarters, loose to branded conversions in the coconut oil segment picked up with firming up of the copra prices aiding volume growth in the off-season. Copra prices were up 1% sequentially and down 18% YoY in December Quarter 2022. The parachute brand gained 30 bps in volume market share during the quarter.
Saffola Oils reported volume growth in low teens supported by stability in trade inventory and consumer pricing. Revenue growth of 10% YoY was lower due to pricing corrections. According to the management, volatility in the international vegetable oil pricing needs to be watched going ahead. Marico launched a healthy and lip-smacking snack offering, Saffola Munchiez in Q3FY23.
Value Added Hair Oils reported 3% YoY value decline due to subdued rural consumption and low demand in mass personal care categories. Mid-premium segments fared better than the bottom of the pyramid segment for Marico in Q3FY23. The company gained 80 bps market share in the value added hair oils segment.
