Revenue from operations increased 15% YoY to Rs 2,794 crore in Q3 FY25, with underlying volume growth of 6% in the domestic business and constant currency growth of 16% in the international business.

Profit before tax grew by 4.64% to Rs 518 crore in Q3 FY25 as compared with Rs 495 crore reported in Q3 FY24.

EBITDA stood at Rs 533 crore in Q3 FY25, up 4% as compared with Rs 513 crore in Q3 FY25. EBITDA margin fell by 210 bps to 19.1% in Q3 FY25 as against 21.2% in Q3 FY24.

A&P spends rose by 19% YoY, reflecting its strategic focus on continually strengthening franchises and driving diversification.

Domestic revenue grew 17% YoY to Rs 2,101 crore, driven by price hikes in core portfolios to offset the rise in input costs. Among channels, MT and e-commerce (including Quick Commerce) led with high double-digit volume growth, while GT remained flat.

Parachute Rigids achieved 3% volume growth, despite a 1% impact from the reduction in ml-age on key price-point packs, implemented instead of a price increase. The brand demonstrated resilience even amid the steeper-than-expected rise in copra prices. Volume offtakes grew in the high single digits, resulting in a 140bps market share gain on a MAT basis. Revenue grew by 15%, supported by pricing hikes earlier this year.

Additionally, the brand implemented a further 5% price increase towards the end of the quarter, as copra prices are expected to remain elevated. The impact of the sharp rise in copra prices and recent brand pricing on near-term consumption will be closely monitored.

Value-Added Hair Oils (VAHO) saw a 2% decline in value terms but showed clear signs of recovery on a sequential basis. The mid and premium segments performed relatively better, contributing to a 70-bps gain in value market share on a MAT basis. The firm expects gradual improvement in VAHO, supported by ATL investments, brand activations, and the recovering sentiment in rural consumption.

Saffola Edible Oils showed stability, achieving low-single-digit volume growth despite the sharp rise in vegetable oil prices. The brand saw a 24% revenue growth, driven by pricing interventions made in recent months.

The Foods segment posted a strong 31% value growth YoY, approaching Rs 1,000 crore ARR in Q3. Saffola Oats achieved double-digit growth, while newer franchises performed well.

Premium Personal Care continued its strong performance in the quarter, driven by the digital-first portfolio. The portfolio, which includes Beardo, Just Herbs, and Plix's personal care offerings, exceeded expectations, reaching Rs 600 crore in ARR in Q3. Beardo is on track to achieve double-digit EBITDA margins this year.

Within the international business, Bangladesh posted 20% CCG (constant currency growth), demonstrating strong resilience of the business model amidst a challenging macro environment. The fundamentals and medium-term growth construct of the business remain intact. MENA delivered 35% CCG with broad-based growth in the Gulf region and Egypt. South Africa registered 17% CCG, with both the Hair Care and Health Care franchises faring well. Southeast Asia had a soft quarter. NCD and exports posted 15% growth.

On outlook front, the company said, 'Amidst the stable macro backdrop, we expect gradual improving growth trends in the core categories of our domestic business through the ongoing initiatives to support select General Trade (GT) channel partners and transformative expansion in our direct reach footprint under Project SETU. We also continue to draw confidence from healthy offtakes, penetration, and market share gains in our key portfolios.

The company's ongoing investment in scaling up its Foods and Premium Personal Care portfolios has led to a noticeable shift in the revenue structure, enabling differentiated growth despite slower demand in mass consumption-driven segments in recent quarters.

The focus remains on aggressively diversifying the portfolio in line with medium-term strategic goals. Following structural improvements in supply chain and GTM last year, the company aims to grow Foods at a 20-25% CAGR, doubling FY24 revenues by FY27.

The digital-first portfolio is expected to exceed Rs 600 crore in ARR by FY25 and double FY24 ARR by FY27. The domestic revenue share from these portfolios is projected to reach around 25% by FY27. After an 800 bps gross margin improvement in FY24, gradual margin improvements are expected in the Foods portfolio as it scales. Beardo is on track to deliver a double-digit EBITDA margin this year, with plans to replicate this success in the digital-first portfolios, targeting a double-digit EBITDA margin by FY27.

The international business has grown from strength to strength in the face of transient headwinds in select regions. We aim to maintain the double-digit constant currency growth momentum over the medium term.

In the medium term, we aim to deliver double-digit revenue growth through consistent outperformance vis-'vis the category and market share gains in the domestic core portfolios, accelerated growth in the Foods and Premium Personal Care, and double-digit constant currency growth in the international business. We also expect operating margin to inch up over the medium term with leverage benefits as well as premiumization of the portfolios across both the domestic and international businesses.'

Saugata Gupta, MD & CEO, commented, 'We have delivered a considerably resilient performance in this quarter with the highest underlying volume and revenue growth in 13 quarters. The core domestic portfolios have held firm amidst inflationary conditions and witnessed market share and penetration gains, with the accelerated scale-up in food and digital-first brands visibly advancing the diversification agenda.

The robust momentum in the overseas business, despite challenging operating conditions in select markets, reinforces our medium-term growth algorithm. While the sharper-than-anticipated rise in input costs will have some transient impact on margins in the near term, we remain biased towards driving top-quartile volume growth and double-digit revenue growth in the near and medium term.'

Meanwhile, the board has declared an interim dividend of Rs 3.50 per share, as on the record date, i.e., 7 February 2025. The date of payment of the interim dividend will be on or before Sunday, 2 March 2025.

Marico is one of India's leading consumer products companies in the global beauty and wellness space. Its portfolio includes brands such as Parachute, Saffola, Fitty Gourmet, Saffola ImmuniVeda, Saffola Mealmaker, Hair & Care, Parachute Advanced, Nihar Naturals, Mediker, Coco Soul, Revive, Set Wet, Livon, and Beardo.

Shares of Marico rose 0.05% to currently trade at Rs 672.70 on the BSE.

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