FMCG Major Marico Demonstrates Growth Amidst Revenue Di
Marico, a leading FMCG company, has reported revenue from operations of Rs 2,422 crore for Q3 FY24, reflecting a slight YoY drop of 2%. However, the company’s net profit has shown robust growth, surging by 15.92% from Rs 333 crore in the third quarter of the previous fiscal to Rs 386 crore in the corresponding quarter of the current fiscal.
Ad Spends Witness Significant Increase
Marico’s advertising spends have experienced a noteworthy upswing, marking an 11.8% increase. The company invested Rs 246 crore in advertising during Q3, compared to Rs 220 crore in the same quarter last year. The surge in ad spends aligns with Marico’s strategic focus on driving long-term growth in both core and new franchises.
Strategic Focus for Long-Term Growth
Saugata Gupta, MD & CEO of Marico, emphasized the company’s commitment to long-term growth, indicating that the advertising and promotional spends were intensified to bolster growth prospects in core and new franchises.
Domestic Business Improvement
In the domestic business segment, Marico observed signs of improvement in core portfolios. Gupta expressed optimism about the steps initiated to enhance the business prospects of the GT channel, anticipating positive outcomes.
International Business Resilience
Marico’s international business delivered mid-single digit constant currency growth, facing temporary macroeconomic headwinds in Bangladesh. Despite challenges in certain regions, the international business exhibited resilience, with expectations of sustained growth momentum in the future.
Outlook and Operating Margin Projection
Gupta provided insights into the company’s outlook, stating that Marico is on track to achieve its highest-ever operating margin this year. The company anticipates maintaining a resilient margin profile in the upcoming quarters.
In summary, Marico’s Q3 results reflect a dynamic performance, showcasing a strategic emphasis on advertising investments to drive growth. The company remains optimistic about its domestic and international business segments, aiming for sustained momentum and robust operating margins.
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