FMCG company Marico on Thursday reported a 13.2 percent year-on-year increase in net profit to Rs 257 crore for the fourth quarter ending on March 31, 2022.
In the fourth quarter in the2020-21 fiscal, Marico had reported a net profit of Rs227 crore. The CNBC-TV18 poll had predicted a net profit of Rs 245 crore for company's the FY22 fourth quarter.
Marico's revenue grew 7.4 percent to Rs 2,161 crore in the fourth quarter of FY22, compared to Rs 2,012 crore in the corresponding quarter last year. The CNBC-TV18 poll had predicted Marico's revenue at Rs 2,172 crore for the quarter in review.
"In Q4FY22, revenue from operations grew by 7 percent year-on-year to Rs 2,161 crores with the domestic business staying steady in a challenging consumption environment and the international business posting healthy double-digit revenue growth," Marico said in an earning statement.
Its revenue from the domestic market rose 5.08 percent to Rs 1,654 crore against Rs 1,574 crore in the fourth quarter of the 2020-21 fiscal year.
"The FMCG market continued to decline in Q4 in volume terms. Against this backdrop, Marico's domestic business delivered a resilient 5 percent revenue growth, with 1 per cent underlying volume growth," the statement added.
Marico's revenue from international sales in the fourth quarter in FY22 was up 15.75 percent at Rs 507 crore against Rs 438 crore in the corresponding period in the previous fiscal. "The International business delivered 12 percent constant currency growth in the quarter with each of the Bangladesh, South Africa and MENA businesses clocking double-digit constant currency growth. In the full year, the International business delivered a stellar 16 percent constant currency growth," the company said.
The company reported Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rs346 crore in the fourth quarter of the 2021-22 fiscal year. The company's EBITDA grew 8.5 percent from Rs319 crore in the the corresponding quarter in FY21. The CNBC-TV18 poll had predicted Marico's fourth quarter's EBITDA as Rs345 crore in FY22.
The CNBC-TV18 poll prediction of 15.9 percent as Marico's EBIDTA margin was close, as the company recorded 16 percent for the same. In the 2020-21 fiscal year's fourth quarter, the company had reported its EBIDTA margin at 15.8 percent.
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Marico's total expenses surged 7.13 percent to Rs 1,863 crore from Rs 1,739 crore in Q4 FY21.
Marico's MD and CEO Saugata Gupta said, "We have closed the year on a positive note with healthy topline and bottom-line growth. The domestic business braved through challenging demand conditions and climbing costs to stay ahead of the overall FMCG market". However, Gupta also said that the near term demand outlook is "uncertain."
"We stay focused on doing the basics right and driving sustainable and profitable growth over the medium term," he said. Marico holds its medium-term aspiration of delivering 13-15 percent revenue growth on the back of 8-10 percent domestic volume growth and double-digit constant currency growth in the international business.
"The company will aim to maintain operating margin above the threshold of 19 percent over the medium term," it added.
Speaking to CNBC-TV18, Gupta said the company will continue to invest in the diversification agenda of foods, digital brand and distribution.
“We have continued to invest behind the diversification agenda in foods, digital brand and distribution. Therefore we want to ensure that we protect our market share and brand penetration. We would not like to manage short term profitability as long as the operating margin stays in the 18-19 percent band on an annualised basis.”
With PTI inputs