Marico Limited · NSE:MARICO

Marico — Q3 FY22 Earnings Presentation

34 slides from Marico's earnings presentation, Jan 28, 2022

  1. Slide 1: Cover letter to stock exchanges

    January 28, 2022 The Secretary, The Manager, Listing Department, Listing Department, BSE Limited, National Stock Exchange of India Limited, 1st Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1 Block G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Scrip Co

  2. Slide 2: Q3 FY22 Results

    Q3 FY22 Results JANUARY 2022 Marico Information classification: Official

  3. Slide 3: Safe Harbour Statement

    Safe Harbour Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar

  4. Slide 4: Index

    Index Macro Context Q3 Performance Strategy and Financials Highlights Outlook 4 6 18 23 3 Marico Information classification: Official

  5. Slide 5: Visible Moderation in Market Growth | Rural still muted, but should recover soon

    Visible Moderation in Market Growth | Rural still muted, but should recover soon Crude Nielsen FMCG Market Volume Growth (%) 22% Urban 15% Rural 5% Edible Oil 0% -3% -4% Q1 Q2 Q3 Mar Jun Sep Dec Mar Jun Sep Dec FMCG market volumes moderated, Inflation squeezing consumer wallets especially in rural 4

  6. Slide 6: Index

    Index Macro Context Q3 Performance Strategy and Financials Highlights Outlook 4 6 18 23 5 Marico Information classification: Official

  7. Slide 7: Resilient domestic business amidst challenging macros | Stellar performance in International

    Resilient domestic business amidst challenging macros | Stellar performance in International Q3 FY22 (YoY) 7.3% 2-Year India India International Consolidated Volume CAGR 12% 18% 13% Revenue growth Constant Currency Revenue growth Growth 14% Increase in A&P Spends (YoY) 17.9% 4% 1% Consolidated Conso

  8. Slide 8: India: Outperforms overall FMCG market | Robust Market Share Gains Continue

    India: Outperforms overall FMCG market | Robust Market Share Gains Continue 2-Year Volume CAGR close 2-year Revenue CAGR Strengthening to medium term aspiration ahead of market competitive position 90%+ Portfolio gaining MS on MAT basis 7% 15% 94% portfolio winning Market Share (MAT Dec’21) High Sin

  9. Slide 9: Parachute: Healthy market share gains continue

    Parachute: Healthy market share gains continue Q3 FY22 Proactive pricing Copra prices measures correct further undertaken from late Dec’21 | 1% soft outlook in Q4 Volume Growth 35% 8% 220 bps 5-7% Volume MS gain Medium-term Value Growth in rigid packs volume growth (MAT Dec’21) Aspiration 8 Marico I

  10. Slide 10: VAHO: Double digit growth on 2-year CAGR basis

    VAHO: Double digit growth on 2-year CAGR basis Q3 FY22 Premiumisation through 3% ~80 bps launch of 2 digital-first Value MS Gain brands in the Value Growth (Oct-Dec’21) anti-hairfall segment 9 Marico Information classification: Official

  11. Slide 11: Saffola Oats becomes No. 1 player in the category

    Saffola Oats becomes No. 1 player in the category with ~42% market share Q3 FY22 19% Saffola Franchise Value Growth Competitive pricing to lead to recovery Saffola Oats franchise in volume growth in the near term GROWING RELEVANCE OF INCREASED PENETRATION ~560 bps HEALTHY LIVING Gain in Value MS (MA

  12. Slide 12: Saffola Foods poised to reach circa 500 cr. topline this year

    Saffola Foods poised to reach circa 500 cr. topline this year Key TV Campaigns Q3 market shares: ~13% in MT (all-time high) Prototyping in select GT markets Tracking ahead of expectations Available across channels and Saffola e-store ~23% in E-commerce 11 Marico Information classification: Official

  13. Slide 13: Premium Personal Care: Gradually building momentum

    Premium Personal Care: Gradually building momentum Livon Serums ahead of pre-COVID levels | clocks double digit growth YoY • Leverage leadership position of our brands and low penetration of categories • Beardo and Just Herbs in Set Wet portfolio line with expectations | treading the recovery Beardo

  14. Slide 14: Aspiration of ₹ 450-500 cr. topline by FY24 from Digital-first brand portfolio

    Aspiration of ₹ 450-500 cr. topline by FY24 from Digital-first brand portfolio Beardo Pure Sense Key P&L Just Herbs Coco Soul 13 Marico Information classification: Official

  15. Slide 15: International Business powers on | Delivers 18% CCG

    International Business powers on| Delivers 18% CCG Bangladesh South East Asia South Africa MENA 16% New launches scaling up well 27% Broad based recovery in 6% 21% CCG CCG Vietnam CCG CCG CCG – Constant Currency Growth 14 Marico Information classification: Official

  16. Slide 16: Recent Launches – International (1/2)

    Recent Launches – International (1/2) Bangladesh South East Asia - Vietnam Red King Parachute Just for Baby X-Men Clean and Fresh Men’s Cooling Oil No Tears Baby Shampoo Male Shampoo Range 15 Marico Information classification: Official

  17. Slide 17: Recent Launches – International (2/2)

    Recent Launches – International (2/2) MENA - Middle East MENA - Egypt Fiancee Nourishing Hair Oil Range Saffola Masala Oats Savoury Oats Range Parachute Advansed Hair Oil Range Fiancee Nourishing Hair Cream Parachute Skinpure Aromatic (Pump and Jar Packs) 100% Organic Extra Virgin CNO Range 16 Maric

  18. Slide 18: Index

    Index Macro Context Q3 Performance Strategy and Financials Highlights Outlook 4 6 18 23 17 Marico Information classification: Official

  19. Slide 19: Near Term Outlook

    Near Term Outlook External Stimulus • Impact of pandemic should remain controlled in light of expanding vaccination coverage • Expect enhanced stimulus in the upcoming Union Budget • Optimistic of improvement in rural consumption sentiment Business and Competitive Position • Domestic business to gro

  20. Slide 20: Medium-Term Strategic Priorities Remain Consistent

    Medium-Term Strategic Priorities Remain Consistent 8-10% Domestic Volume Growth Premiumisation Expansion of of the Core Foods Portfolio Market Share Accelerate Digital Sustained Gains Cost Management Transformation Double Digit Rejuvenation of GTM Expansion International Business CCG Discretionary (

  21. Slide 21: Integrating ESG focus with Sustainable Value Creation Goals

    Integrating ESG focus with Sustainable Value Creation Goals Corporate Governance & Behaviour Climate and Emissions G Social Value Creation Water Stewardship E Sustainable Coconut S Circular Economy Product Responsibility Responsible Sourcing 20 Marico Information classification: Official

  22. Slide 22: Awards and Recognitions

    Awards and Recognitions Winners in 'Innovations in Parachute has been ranked as FICCI CSR Award winners in the Operations' in the one of the top 5 purposeful 'Education' category, for our ‘Manufacturing’ category at brands in FMCG by Teacher Empowerment Program the IDC Industry Innovation Kantar Bra

  23. Slide 23: Index

    Index Macro Context Q3 Performance Strategy and Financials Highlights Outlook 4 6 18 23 22 Marico Information classification: Official

  24. Slide 24: Consolidated Profit & Loss Statement

    Consolidated Profit & Loss Statement (in ₹ cr.) P&L Particulars Q3FY22 Q3FY21 Change (%) 9.3% Revenue from Operations 2,407 2,122 13% A&P as a % of Sales Material Cost 1,355 1,125 20% ASP 223 196 14% Employee Cost 144 148 -3% Other Expenses 254 240 6% EBITDA 431 413 4% 18% International EBITDA Margi

  25. Slide 25: Working Capital

    Working Capital Key P&L Capital Efficiency Ratios Particulars Q3FY22 Q3FY21 Debtors Turnover (Days) 29 23 Inventory Turnover (Days) 53 49 Net Working Capital (Days) 19 21 • Increase in revenue mix from alternate channels -> higher debtors days • Strategic positon building and inflation in raw materi

  26. Slide 26: Annexure 1: Operating Margin Structure for Marico Limited (Consolidated)

    Annexure 1: Operating Margin Structure for Marico Limited (Consolidated) Particulars (% of Revenues) Q3FY22 Q2FY22 Q3FY21 Material Cost (Raw + Packaging) 56.3% 57.5% 53.0% Advertising & Sales Promotion (ASP) 9.3% 8.0% 9.2% Personnel Costs 6.0% 6.3% 7.0% Other Expenses 10.6% 10.6% 11.3% PBDIT margins

  27. Slide 27: Annexure 2: Market Shares in Key Categories in the India Business

    Annexure 2: Market Shares in Key Categories in the India Business - MAT Dec’21 Franchise ~MS% Rank ^ Coconut Oils 63% 1st ^ Parachute Rigids within Coconut Oils 53% 1st ^ Saffola – Super Premium ROCP 83% 1st * Saffola Oats (Market leader in Flavoured Oats) 42% 1st ^ Value Added Hair Oils 37% 1st ^ P

  28. Slide 28: Annexure 3: ESG Performance Snapshot (till Q3 FY22)

    Annexure 3: ESG Performance Snapshot (till Q3 FY22) Emissions & Energy Water Stewardship Circular Economy Sustainable Coconut Social Value Creation • 79.1% reduction in GHG • 100% replenishment of water • 95% recyclable packaging by  0.234 mn acreage  0.8 mn+ students impacted emission intensity c

  29. Slide 29: Thank You

    MARICO LIMITED CIN - L15140MH1988PLC049208 7th Floor, Grande Palladium 175, CST Road, Kalina, Santa Cruz (East) Mumbai- 400 098 www.marico.com More Websites: www.artofoiling.com www.saffolalife.com www.niharnaturals.com www.fitfoodie.in www.hairsutras.com www.parachuteadvansed.com www.livonilovemyha

  30. Slide 30: Information Update for Q3FY22: Executive Summary

    Marico – Information Update for Q3FY22 (Quarter ended December 31, 2021) Executive Summary: Consolidated Results Particulars (₹ Cr) Q3FY22 YoY Growth 2- Year CAGR Revenue from Operations 2,407 13% 15% EBITDA 431 4% 7% EBITDA Margin (%) 17.9% Down by 155 bps Profit After Tax (excluding one-offs) 310

  31. Slide 31: Information Update for Q3FY22: India Business

    Marico – Information Update for Q3FY22 (Quarter ended December 31, 2021) Summary of YoY value growth across Businesses in Q3FY22: FMCG Business 13% India 12% International 19% India Business The domestic business delivered a turnover of ₹ 1,817 crore, up 12% on a YoY basis. The operating margin was

  32. Slide 32: Information Update for Q3FY22: Premium Personal Care and Input Costs

    Marico – Information Update for Q3FY22 (Quarter ended December 31, 2021) Premium Personal Care The Premium Personal Care portfolio had another good quarter. Livon Serums clocked double-digit growth and is now consistently trending above pre-COVID run rates. Male Grooming also grew healthily. The Bea

  33. Slide 33: Information Update for Q3FY22: Medium-Term Outlook

    Marico – Information Update for Q3FY22 (Quarter ended December 31, 2021) Over the medium term, we hold our aspiration to deliver 13-15% revenue growth on the back of 8-10% domestic volume growth in the domestic business and double-digit constant currency growth in the international business. We will

  34. Slide 34: Mode of Issue of this update

    Marico – Information Update for Q3FY22 (Quarter ended December 31, 2021) Mode of Issue of this update We have issued this Information Update, first to the Stock Exchanges, posted it on Marico’s website and then sent it to the financial community members who are on Marico’s regular mailing list. We r

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