Marico Limited · NSE:MARICO
Marico — Q1 FY22 Earnings Presentation
27 slides from Marico's earnings presentation, July 2021
Slide 1: Q1 FY22 Results
Q1 FY22 Results JULY 2021 Marico Information classification: Official
Slide 2: 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 3: Index
Index Macro Context Q1 Performance Strategy and Financials Highlights Outlook 4 6 16 20 3 Marico Information classification: Official
Slide 4: Supply Chain Resilience helped cope with second COVID wave
Supply Chain Resilience helped cope with second COVID wave Severe COVID surge in Rural growth moderated Localized Lockdowns Resilient Supply Chain India mid quarter | but still outpacing urban Higher caseloads in South Shops operating for limited Moderation thereafter Normal monsoon forecast and Wes
Slide 5: Index: Q1 Performance Highlights
Index Macro Context Q1 Performance Strategy and Financials Highlights Outlook 4 6 16 20 5 Marico Information classification: Official
Slide 6: Robust Topline Performance | Consistent Investment in Brand-Building
Robust Topline Performance | Consistent Investment in Brand-Building Domestic Q1 FY22 (YoY) 35% International 21% 21% 20% 31% 27% Consolidated ASP Growth Volume Growth Revenue Growth Constant Currency Revenue Growth Consolidated Growth Revenue Growth 319 bps Sequential EBITDA 19.0% 3% 8% Margin Impr
Slide 7: India: Strong momentum in Core Portfolios and Foods
India: Strong momentum in Core Portfolios and Foods 35% 21% 90%+ Portfolio gaining MS on MAT basis Volume Growth Value Growth Channel Volume Growth GT E-commerce 17% 61% Rural & Urban growth in tandem 9% of Q1FY22 Domestic Sales 7 Marico Information classification: Official
Slide 8: Parachute: Strong Performance in a challenging environment
Parachute: Strong Performance in a challenging environment Q1FY22 Healthy growth Copra Outlook despite higher second Range bound in the COVID wave impact near term 34% 12% on core South and West markets Volume Gr. 80 bps 5-7% 20% 35% Market Share gain in Medium-term rigid packs on MAT Volume Growth
Slide 9: VAHO: Category Leading Growth on MAT basis
VAHO: Category Leading Growth on MAT basis Q1FY22 Sustain 20%+ double-digit volume Volume growth in growth trajectory 34% all key brands Volume Gr. Bottom of Pyramid – Aggression 70 bps Mid - Pricing | Renovation 35% Volume Market Premium - Innovation | MS Gain Share Gain on MAT Value Gr. basis 9 Ma
Slide 10: Saffola Franchise: Stellar Performance Continues
Saffola Franchise: Stellar Performance Continues 60% 24% Vol Gr. Value Gr. Low double-digit volume GROWING 94% 59% growth in Saffola Edible Oils IN-HOME RELEVANCE OF INCREASED Market Share in Value Growth in COOKING HEALTH LIVING PENETRATION Flavoured Oats Oats franchise 100%+ Saffola Foods Growth i
Slide 11: Foods on course to reach ₹ 100 Crores turnover in FY22
Foods on course to reach ₹ 500 Crores turnover in FY22 | ~5,000 cr TAM Watch Ad Watch Ad 25%+ market share in e-commerce Scaling up well in GT & MT ~14% market share in MT Double-digit market share in key MT chains #5 bestseller on GT expansion to rest of East and parts of Noodle and Pasta North ₹ 1
Slide 12: Premium Personal Care reviving gradually
Premium Personal Care reviving gradually As discretionary consumption picks up Livon Serums at Pre-COVID Levels • Leverage leadership position of our brands and low penetration of categories Set Wet portfolio still to recover fully • Beardo in line with expectations | Target 100 Cr run rate by year
Slide 13: 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
Slide 14: International: Broad-based recovery across markets
International: Broad-based recovery across markets Bangladesh South East Asia South Africa MENA 9% 20% 16% Positive momentum in 52% 74% CCG CCG Foods Continues CCG CCG CCG in Non- (on low base) Coconut Oil Portfolio (on low base) 14 CCG – Constant Currency Growth Marico Information classification: O
Slide 15: Index: Outlook
Index Macro Context Q1 Performance Strategy and Financials Highlights Outlook 4 6 16 20 15 Marico Information classification: Official
Slide 16: Near Term Outlook
Near Term Outlook External Stimulus Revenues Margins • Vaccination Drive and Coverage • Sustain Volume Growth • Gross Margin Bottomed Out | To Improve • Normal Monsoon • Maintain Market Share Sequentially Gain Momentum • Continued Government Stimulus • Aggressive Cost • Stable Growth in the Manageme
Slide 17: Strategic Priorities Remain Consistent
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 (Chemist Chan
Slide 18: 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 S Circular Economy Sustainable Coconut Product Responsibility Responsible Sourcing 18 Marico Information classification: Official
Slide 19: Index: Strategy and Financials
Index Macro Context Q1 Performance Strategy and Financials Highlights Outlook 4 6 16 20 19 Marico Information classification: Official
Slide 20: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (in ₹ cr.) P&L Particulars Q1FY22 Q1FY21 Change (%) Revenue from Operations 2,525 1,925 31% Material Cost 1,489 989 51% ASP 175 138 27% Employee Cost 150 135 11% Other Expenses 230 196 17% EBITDA 481 467 3% EBITDA Margin 19.0% 24.3% (522 bps) PAT bei 356 331 8% D
Slide 21: Capital Efficiency Ratios
Capital Efficiency Ratios KeyParticulars P&L Capital Efficiency Ratios Q1FY21 Q1FY22 Debtors Turnover (Days) 25 21 Inventory Turnover (Days) 61 47 Net Working Capital (Days) 33 12 Return on Capital Employed (%) 50.6% 50.4% Return on Net Worth (%) (excl. one-offs) 41.1% 41.6% 21 Marico Information cl
Slide 22: Awards and Recognitions
Awards and Recognitions STRATEGIC INVESTMENT IN JUST HERBS Ranked highest amongst FMCG companies Awarded ‘Best CSR Practices’ at the in CRISIL Limited’s ESG Performance Score in 2021 Responsible Business Awards 2021 Recognized as one of the top 10 BSE 100 Indian Cos. in Recognized as the 7th Most De
Slide 23: Annexure 1: Operating Margin Structure for Marico Limited (Consolidated)
Annexure 1: Operating Margin Structure for Marico Limited (Consolidated) Particulars (% of Revenues) Q1FY22 Q4FY21 Q1FY21 Material Cost (Raw + Packaging) 59.0% 55.9% 51.4% Advertising & Sales Promotion (ASP) 6.9% 8.6% 7.2% Personnel Costs 5.9% 7.5% 7.0% Other Expenses 9.1% 12.2% 10.2% PBDIT margins
Slide 24: Annexure 2: Market Shares in Key Categories in the India Business
Annexure 2: Market Shares in Key Categories in the India Business - (MAT Jun’21) Franchise ~MS% Rank ^Coconut Oils 62% 1st ^Parachute Rigids 52% 1st ^Saffola – Super Premium ROCP 82% 1st *Saffola Oats 39% 2nd *Saffola Masala Oats - Flavoured Oats 94% 1st ^Value Added Hair Oils 37% 1st ^Post wash Lea
Slide 25: Annexures 3 – ESG Performance Snapshot (1/2)
Annexures 3 – ESG Performance Snapshot (till Q1 FY22) .........(1/2) • 80% reduction in GHG emission intensity (Scope 1+2) • 72% energy sourced from renewables Climate and Emissions • CDP – Climate Change: A- rating (2020) • 100% replenishment of water consumed in operations Water • 2,300 mn litres
Slide 26: Annexures 3 – ESG Performance Snapshot (2/2)
Annexures 3 – ESG Performance Snapshot (till Q1 FY22) .........(2/2) • Product Sustainability Index framework established for Marico • Environmental Lifecycle Assessment (LCA) conducted for flagship brands – Parachute Coconut Oil, Saffola Oil Product Responsibility (Total and Gold) and Saffola Oats.
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