Marico Ltd reported a 3% decline in its Q2FY23 net profits

On Friday, Homegrown FMCG major Marico reported a 2.8 percent year-on-year (YoY) drop in net profit at INR 301 crore for the second quarter that ended September 30, 2022 while in the corresponding quarter last year, the company posted a net profit of INR 316 crores.

The revenue from operations stood at INR 2,496 crore during the period under review, up 3.2 percent against INR 2,419 crore in the corresponding period of the preceding fiscal, with underlying volume growth of 3 percent in the domestic business and constant currency growth of 11 percent in the international business. At the operating level, EBITDA jumped 2.4 percent to INR 433 crore in the second quarter of this fiscal over INR 423 crore in the corresponding period in the previous fiscal. The EBITDA margin stood at 17.4 percent in the reporting quarter compared to 17.5 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation and amortization.

After a tepid Q1, the company recovered to post reasonable growth in domestic volumes on the back of healthier traction among urban and premium discretionary portfolios. On a three-year CAGR basis, quarterly domestic volume growth stood at a healthy 7 percent. Domestic revenues stood at INR 1,896 crore, up 1 percent YoY, as price hikes in hair oils and premium personal care portfolios were more than offset by price cuts in Parachute coconut oil and Saffola oils.

The FMCG player that owns iconic brands like Parachute and Saffola, said in India, as retail inflation held firm, the FMCG sector witnessed a volume decline for the fourth quarter in a row, with growth led by pricing.