FMCG major Marico inched 0.36% higher to Rs 339.05 after declaring Q3 December 2019 result after market hours yesterday, 30 December 2020.
On consolidated basis, Marico's net profit rose 10.6% to Rs 272 crore in Q3 December 2019 as against Rs 246 crore reported in Q3 December 2018, supported by growth in international business. Net sales declined 2% to Rs 1824 crore.Profit before tax (PBT) for Q3 December 2019 stood at Rs 358 crore, up by 5% from Rs 341 crore reported in Q3 December 2018. Tax expenses declined 33% to Rs 71 crore in Q3 FY20 from Rs 106 crore posted in Q3 FY19.
Consolidated EBITDA grew by 4% to Rs 373 crore in Q3 December 2019 as against Q3 December 2018. EBITDA margin jumped 116 basis points to 20.4% in Q3 2019 over Q3 2018. The company further added that benign input costs in the domestic and Bangladesh businesses led to gross margin expansion of 286 bps on a YoY basis.
International business delivered 10% constant currency growth, led by strengthening momentum in Bangladesh and healthy growth in exports to diaspora and other markets. The business in Bangladesh grew by 15% in Q3FY20 in constant currency terms.
The India business recorded a volume decline of 1%. Amidst the bleak consumption sentiment, especially in rural, the domestic business clocked a turnover of Rs 1,380 crore, down 5% on a year-on-year basis.
The company reported that Marico brands' offtake grew ahead of the category, resulting in market shares gains across most segments. Persistent liquidity constraints in the traditional channel, especially wholesale and in rural led to a further correction in trade channel inventories.
In its outlook, Marico said, "We will continue to invest behind brand building to support market growth initiatives in core categories and expansion into adjacent categories. A&P spends are expected to be circa 9% of sales on an annualized basis. The company will continue to drive cost excellence across the organization to extract savings that will be redeployed towards igniting profitable growth and pricing. Operating margin is expected to be maintained at 18-19% over the medium term."
Meanwhile, Marico said its board declared an interim dividend of Rs 3.25 per share.
Marico is a leading Indian group in consumer products in the global beauty and wellness space.
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