Marico Limited · NSE:MARICO
Marico — Q1 FY23 Earnings Presentation
33 slides from Marico's earnings presentation, Aug 6, 2022
Slide 1: Exchange cover letter for Information Update Q1 FY23
August 6, 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 Code
Slide 2: Q1 FY23 Results
Q1 FY23 Results AUGUST 2022 Marico Information classification: Official
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
Slide 4: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 17 20 3 Marico Information classification: Official
Slide 5: Operating Environment stayed challenging
Operating Environment stayed challenging Retail Inflation & Currency Demand Slowdown Risk of external Depreciation disruptions Retail price inflation well above the RBI's upper FMCG sector witnessed volume decline for the tolerance limit of 6% third quarter in a row World Uncertainty Index on the ris
Slide 6: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 17 20 5 Marico Information classification: Official
Slide 7: Soft quarter for domestic business, stellar international performance
Soft quarter for the domestic business | Stellar performance in International business Q1 FY23 (YoY) Domestic International Consolidated 401bps Gross margin expansion (YoY) (4%) 18% 1% Revenue growth Constant Currency Revenue growth Growth 159bps EBITDA margin expansion (YoY) 20.6% 10% 4% Consolidat
Slide 8: Exhibiting Strong Resilience
Exhibiting Strong Resilience Strengthening Competitive International Business CCG Trend Consolidated Gross Margin Trend Position in India 90%+ 45.0% 23% 44.5% 96% portfolio gained 21% 18% 18% 43.7% market Share 42.5% 13% 12% 41.0% 93% portfolio sustained Penetration Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY2
Slide 9: Parachute: Market Share Solidifies
Parachute: Market Share Solidifies | Gradual pickup in volumes expected from Q2 Q1FY23 90 bps Copra prices to remain range- bound (2%) Volume MS gain in rigid packs (MAT Jun’22) Volume Growth 35% (9%) 170 bps 5-7% Value MS gain Medium-term volume Value Growth in rigid packs growth Aspiration (MAT Ju
Slide 10: VAHO: Steady performance, value market share strengthens
VAHO: Steady performance | Value Market Share Strengthens Further Broad-based growth across the portfolio amidst challenging consumption environment 3% 5% 60bps Q1 Value Growth Value MS Gain (MAT Jun’22) Volume flattish Expect to deliver double in Q1 after price hikes digit growth in and pack size r
Slide 11: Saffola: Category headwinds weigh on Edible Oils
Saffola: Category headwinds weigh on Edible Oils | Foods holds steady despite sharp base effect Franchise posts low teen revenue decline in Q1 Q1 FY23 18% Saffola Franchise 3-Year Value CAGR Saffola Oats franchise GROWING RELEVANCE OF INCREASED PENETRATION 420 bps 43% HEALTHY LIVING Gain in Value MS
Slide 12: Premium Personal Care: Building momentum
Premium Personal Care: Building momentum Livon Serums continues to clock double digit growth YoY • Leverage leadership position of our brands and low penetration of categories • Beardo and Just Herbs in line with expectations Set Wet portfolio nearing pre-COVID levels • Digital-first brands at circa
Slide 13: Strategic Investment in True Elements
Strategic Investment in True Elements: FOOD that does NOT LIE to YOU ~54% stake acquired in India's only food brand to be recognized as both 'Clean Label' & '100% Wholegrain‘ Promises 0% preservatives, 0% chemicals & 0% added sugar 70+ products spanning across categories of Western breakfast (
Slide 14: Robust 18% CCG in the International Business
Robust 18% CCG in the International Business | NPD launches continue to invigorate Bangladesh South East Asia South Africa MENA 10% New portfolios scaling up 34% HPC segment in Vietnam picks up 23% Broad-based growth 27% Strong growth in the Gulf region Q1 CCG Q1 CCG Q1 CCG Q1 CCG momentum and Egypt
Slide 15: Recent Launches – International (1/2)
Recent Launches – International (1/2) Bangladesh South East Asia - Vietnam X-Men For Boss Male Keratin Shampoo Range X-Men Face Wash Range Parachute Advansed Glo On Onion Hair Growth Oil Skin Cream 14 Marico Information classification: Official
Slide 16: Recent Launches – International (2/2)
Recent Launches – International (2/2) South East Asia - Vietnam Lashe Hair Care and Shower Gel Range 15 Marico Information classification: Official
Slide 17: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 17 20 16 Marico Information classification: Official
Slide 18: Near Term Outlook
Near Term Outlook External Stimulus • Retail Inflation and weakening INR subdue macro context • Early signs of commodity inflation cooling off • Improving rainfall forecast in the heartlands encouraging • Rural sentiment remains key to recovery in FMCG growth Business and Competitive Position • Dome
Slide 19: Driving 4Ds to Make Marico Future-Ready
Driving 4Ds to Make Marico Future-Ready Unlock the next leg of growth through… Diversification Distribution Digital Diversity …..and continue to maintain focus on Grow the Core Cost Management ESG Commitments 18 Marico Information classification: Official
Slide 20: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 17 20 19 Marico Information classification: Official
Slide 21: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (in ₹ cr.) P&L Particulars Q1FY23 Q1FY22 Change (%) Revenue from Operations 2,558 2,525 1% Material Cost 1,406 1,489 -6% ASP 199 175 14% Employee Cost 156 150 4% Other Expenses 269 230 17% EBITDA 528 481 10% EBITDA Margin 20.6% 19.0% 159 bps PBT 499 467 7% PAT 37
Slide 22: Working Capital
Working Capital Key P&L Particulars Capital Efficiency Ratios Q4FY22 Q1FY23 Debtors Turnover (Days) 29 27 Inventory Turnover (Days) 58 49 Net Working Capital (Days) 21 20 Note: The Company has maintained healthy working capital ratios through the year. 21 Marico Information classification: Official
Slide 23: Annexure 1: Operating Margin Structure for Marico Limited
Annexure 1: Operating Margin Structure for Marico Limited (Consolidated) Particulars (% of Revenues) Q1FY23 Q4FY22 Q1FY22 FY22 FY21 Material Cost (Raw + Packaging) 55.0% 55.5% 59.0% 57.1% 53.1% Advertising & Sales Promotion (ASP) 7.8% 9.4% 6.9% 8.4% 8.7% Personnel Costs 6.1% 6.4% 5.9% 6.2% 7.1% Othe
Slide 24: Annexure 2: Market Shares in Key Categories in India
Annexure 2: Market Shares in Key Categories in the India Business - MAT Jun’22 Franchise ~MS% Rank ^ Coconut Oil Franchise 62% 1st ^ Parachute Rigids within Coconut Oils 53% 1st * Saffola Oats 43% 1st ^ Value Added Hair Oils 37% 1st ^ Post wash Leave-on Serums 63% 1st * Hair Gels/Waxes/Creams 55% 1s
Slide 25: Annexure 3: ESG Performance Snapshot
Annexure 3: ESG Performance Snapshot (till Q1 FY23) Marico launched its ESG 2.0 framework on June 5, 2022 commemorating the 50th anniversary of World Environment Day Emissions & Energy Water Stewardship Circular Economy Sustainable Coconut Social Value Creation • 76.4% reduction in GHG • 100% replen
Slide 26: Annexure 4: Awards and Recognitions
Annexure 4: Awards and Recognitions Marico was recognized as the Marico was ranked among the ‘Masters of Risk’ in the ESG Marico was the only FMCG top 3 Most Sustainable category in the 8th edition of company to be placed in the Companies in India by BW the India Risk Management ‘Leadership category
Slide 27: 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
Slide 28: Marico – Information Update for Q1FY23
Marico – Information Update for Q1FY23 (Quarter ended June 30, 2022) Executive Summary: Consolidated Results Particulars (₹ Cr) Q1FY23 YoY Growth Revenue from Operations 2,558 1% EBITDA 528 10% EBITDA Margin (%) 20.6% Up 159 bps Profit After Tax 371 4% India Volume Growth (%) -6% International CCG (
Slide 29: Marico – Information Update for Q1FY23
Marico – Information Update for Q1FY23 (Quarter ended June 30, 2022) term given the current consumption environment and accelerate towards double-digit value growth if rural recovery comes about on expected lines from H2. The Saffola franchise, comprising Refined Edible Oils and Foods, declined by
Slide 30: Marico – Information Update for Q1FY23
Marico – Information Update for Q1FY23 (Quarter ended June 30, 2022) The International business has maintained a steady momentum of healthy profitable growth over the last 5 years. While there are risks of currency depreciation and inflation in some markets, we are confident of maintaining the doubl
Slide 31: Mode of Issue of this update
Marico – Information Update for Q1FY23 (Quarter ended June 30, 2022) 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 recom
Slide 32: Marico Limited – Q1FY23 Results
Marico Limited – Q1FY23 Results Consolidated Revenue up 1% Domestic Business subdued by unabated inflation and muted demand International business maintains robust momentum ; Delivers 18% CCG Sequential Gross margin expansion continues EBITDA margin up 159 bps YoY; EBITDA up 10% In Q1FY23, Revenue f
Slide 33: International business delivered turnover of ₹637 crore
Foods had a slow quarter due to the high in-home consumption base in Oats and sharp decline in immunity-led categories like honey, among others. Saffola Oats maintained its strong leadership position in the Oats category with 420 bps value MS gain on MAT basis. Peanut Butter and Mayonnaise had an en