Marico advertising spends up 13% for Q1 FY25
The company’s operational rev for Q1FY25 stands at Rs 2,643 cr
Marico Ltd has recorded that its revenue from operations stood at Rs 2,643 crore, up 7% YoY, for Q1FY25.
Domestic revenue was ₹1,962 crore, up 7% YoY, as volume growth was supplemented by price hikes in the Coconut Oil portfolio, which more than offset the residual base impact of pricing cuts in the Saffola Oils portfolio, the company said.
The company’s A&P spends was up 13% YoY.
EBITDA margin stood at 23.7%, up 50 bps YoY and EBITDA grew by 9%. PAT (excluding one-offs) was up 12%, the company has stated.
“Amidst the backdrop of improving macro-indicators, we expect a gradual uptick in the growth of our core categories in the domestic business through the ongoing initiatives to enhance the profitability of our General Trade (GT) channel partners and transformative expansion in our direct reach footprint under Project SETU.
We will continue to aggressively diversify the portfolio through the scale up of Foods and Premium Personal Care portfolios while improving profitability parameters in line with our medium-term strategic priorities.
After successful initiatives towards refinements in supply chain and GTM during FY24, we aim to grow Foods at 20-25%+ CAGR to 2x of FY24 revenues in FY27. The Digital-first portfolio is expected to exit FY25 at an ARR of ₹550-600 cr. and scale to 2x of FY24 ARR in FY27. Consequently, we expect the domestic revenue share of the Foods and Premium Personal Care portfolios to expand to ~25% by FY27.”
Saugata Gupta, MD & CEO, commented, “The new fiscal has started on a promising note for both the domestic and international businesses with revenue growth visibly turning a corner. We expect to sustain the improving trajectory in the core domestic business on the back of consistent market share and penetration gains coupled with the ongoing initiatives to revive growth in traditional trade and expand direct reach under Project SETU. We will also maintain steadfast focus on the profitable scale up of the Foods and Digital-first brands. The international business has been veritably consistent over the last few years and is expected to maintain its double-digit constant currency growth momentum. We will aim to deliver on each of the key performance parameters and drive healthy revenue-led earnings growth in the near and medium term.”
