Marico Limited · NSE:MARICO
Marico — Q1 FY2025 Earnings Presentation
29 slides from Marico's earnings presentation, August 2024
Slide 1: Q1 FY25 Results
Q1 FY25 Results AUGUST 2024 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 Overview Performance Outlook Financials Highlights 4 6 14 21 3 Marico Information classification: Official
Slide 4: Gradual improvement in volume trends across the board; YoY pricing turns flattish
Gradual improvement in volume trends across the board; YoY pricing turns flattish FMCG Sector: Volume Growth* FMCG Sector: HPC and Foods Growth* Stable retail inflation, but food 10% 10% inflation at elevated levels 8% 8% 6% 6% 4% 4% 2% 2% Monsoon tracking healthily; however spatial distribution ske
Slide 5: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 14 21 5 Marico Information classification: Official
Slide 6: Revenue growth strengthens on the back of improving volumes and favorable pricing
Revenue growth strengthens on the back of improving volumes and favorable pricing Q1 FY25 (YoY) ~230 bps Domestic International Consolidated Gross Margin expansion YoY 4% 10% 7% Volume Growth Constant Currency Revenue Growth Growth 13% YoY Increase in A&P spends 23.7% 9% 12% Consolidated EBITDA Marg
Slide 7: Positive momentum in PCNO & Saffola Oils | VAHO expected to recover ahead
Positive momentum in PCNO & Saffola Oils | VAHO expected to recover ahead Parachute Coconut Oil Saffola Edible Oils Value Added Hair Oils (34% of Domestic Revenues) (16% of Domestic Revenues) (22% of Domestic Revenues) 4Y Vol. CAGR : Mid-single digit in Edible Oils Mid and Premium 2% 6% Mid single-d
Slide 8: Robust quarter for Foods | Annualized run rate at ~₹800 cr.
Robust quarter for Foods | Annualized run rate at ~₹800 cr. Q1 Value Growth 37% 8 Marico Information classification: Official
Slide 9: Premium Personal Care: Continues strong show
Premium Personal Care: Continues strong show Serums | Male Grooming | Skin Care Digital-First Brands Expected ~₹300 cr. Q1 ARR ₹550-600 cr. FY25 Exit ARR 9 Marico Information classification: Official
Slide 10: Collaboration with Kaya to advance play in science-backed personal care
Collaboration with Kaya to advance play in science-backed personal care Kaya offers a portfolio of dermatologist-recommended products, ranging from daily essentials to specialized solutions for acne, brightening, sun care, anti-ageing and hair care. Marico has exclusive rights to scale up Kaya’s ran
Slide 11: Project SETU: Kick-off in Q1FY25 across key markets
Project SETU: Kick-off in Q1FY25 across key markets Launch states comprise a mix of higher MS (‘Diversify’) and lower MS (‘Transform’) states Building core portfolios as well as new businesses of Premium Personal Care & 6 Foods in new outlets Launch states in Q1 Distribution being driven along with
Slide 12: Strong performance across key markets | MENA and SA outperform
Strong performance across key markets | MENA and SA outperform Bangladesh South-East Asia MENA South Africa 10% Maintains growth Flat Recovery in Vietnam subdued by decline in 20% growth Led by robust in Egypt 28% Ethnic Hair Care outperforms Q1 CCG momentum Q1 CCG Q1 CCG Q1 CCG Myanmar Internationa
Slide 13: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 14 21 13 Marico Information classification: Official
Slide 14: Staying True to the 4Ds
Staying True to the 4Ds Unlock the next leg of growth through… Diversification Distribution Digital Diversity …..and continue to maintain focus on Grow the Core Cost Management ESG Commitments 14 Marico Information classification: Official
Slide 15: Diversification remains a key priority: Profitable Scale up in Foods to continue
Diversification remains a key priority: Profitable Scale up in Foods to continue Foods portfolio to be Aim to drive consistent improvements in profitability 2x of FY24 scale in FY27 as constituent franchises attain critical mass Foods Revenues (in ₹ cr.) Foods Gross Margin (%) ~8x ~4x x FY20 FY24 FY
Slide 16: Diversification remains a key priority: Digital Business to leverage enhanced capabilities
Diversification remains a key priority: Digital Business to leverage enhanced capabilities Exit ARR of Digital-First brands Aim for Double Digit EBITDA margin in expected to be 2x of FY24 ARR in FY27 Digital-first brands in FY27 Digital-first brands exit ARR (in ₹ cr.) Digital-first brands EBITDA Ma
Slide 17: Project SETU: Drive growth in GT through transformative expansion in Direct Reach
Project SETU: Drive growth in GT through transformative expansion in Direct Reach 3-Year Phased Plan A fit for purpose and FY24 FY27 fit for future GTM Model Market share Gain across categories in rural and urban 1 mn 1.5 mn Direct reach Direct reach To drive profitable growth and competitive advant
Slide 18: Project SETU: Resource re-allocation to fund coverage improvement & demand generation
Project SETU: Resource re-allocation to fund coverage improvement & demand generation Project SETU will be cost neutral BTL & Channel Coverage & Infra Spends Improvement Costs Optimize Wholesale channel spends Scaled up sales force, distributor (indirect distribution cost) & commercials, process sim
Slide 19: Aiming for robust revenue-led earnings growth in the near & medium term
Aiming for robust revenue-led earnings growth in the near & medium term India Business – Improving trajectory International Business (CCG) - Going Strong Volume Growth Revenue Growth Retain double-digit CCG momentum 7% 4% 3% 2% 0% Q3FY24 Q4FY24 Q1FY25 FY25E Q4FY24 Q1FY25 FY25E Q4FY24 Q1FY25 FY25E In
Slide 20: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 14 21 20 Marico Information classification: Official
Slide 21: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (in ₹ cr.) P&L Particulars Q1FY25 Q1FY24 Change (%) FY24 FY23 Change (%) Revenue from Operations 2,643 2,477 7% 9,653 9,764 -1% Material Cost 1,262 1,239 2% 4,748 5,351 -11% ASP 240 212 13% 952 842 13% Employee Cost 203 181 12% 743 653 14% Other Expenses 312 271
Slide 22: Annexure 1: Operating Margin Structure for Marico Limited (Consolidated)
Annexure 1: Operating Margin Structure for Marico Limited (Consolidated) (as a % of Revenues) Q1FY25 Q4FY24 Q1FY24 FY24 FY23 Material Cost (Raw + Packaging) 47.7% 48.4% 50.0% 49.2% 54.8% Advertising & Sales Promotion (ASP) 9.1% 9.9% 8.6% 9.9% 8.6% Personnel Costs 7.7% 8.2% 7.3% 7.7% 6.7% Other Expen
Slide 23: Annexure 2: Working Capital
Annexure 2: Working Capital Key P&L Capital Efficiency Ratios Particulars Q1FY25 Q4FY24 Debtors Turnover (Days) 38 46 Inventory Turnover (Days) 47 52 Net Working Capital (Days) 28 36 Note: The Company has maintained healthy working capital ratios through the year. 23 Marico Information classificatio
Slide 24: Annexure 3: Movement of Key Raw Material Prices
Annexure 3: Movement of Key Raw Material Prices Copra YTD: +19% YoY Rice Bran Oil YTD: +5% YoY KeyxP&L 0.8x x 0.7x Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY24 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q3FY24 Q4FY24 Q1FY25 Liq
Slide 25: Annexure 4: Market Shares in Key Categories in the India Business - MAT Jun'24
Annexure 4: Market Shares in Key Categories in the India Business - MAT Jun’24 Franchise ~MS% Rank ^ Coconut Oil Franchise 64% 1st ^ Parachute Rigids within Coconut Oil 55% 1st * Saffola Oats 41% 1st * Value Added Hair Oils 27% 1st ^ Post wash Leave-on Serums 49% 1st * Hair Gels/Waxes/Creams 51% 1st
Slide 26: Annexure 5: ESG Performance Snapshot (Q1 FY25)
Annexure 5: ESG Performance Snapshot (Q1 FY25) Emissions & Energy Water Stewardship Circular Economy Responsible Sourcing Social Value Creation • 79% reduction in GHG • 55% reduction in • 95.3% recyclable • 82% critical vendors • >1.5 lac trees emission intensity water consumption packaging share by
Slide 27: Annexure 6: Recent ESG Recognitions
Annexure 6: Recent ESG Recognitions Marico has received the prestigious Global Marico's Parachute Kalpavriksha Foundation has CSR, Sustainability and ESG Awards 2024 been honoured with a ‘7-Star Rating’ and from Brand Honchos in the category of Best recognized in the ‘Social Responsibility Water Man
Slide 28: Annexure 7: Awards and Recognitions
Annexure 7: Awards and Recognitions Marico's Guwahati unit received the Marico has been awarded as one of the prestigious 'IMC RBNQA Milestone Top Companies for 2024, by LinkedIn. Merit Award' in the Manufacturing, Operations, and Workforce categories by IMC RBNQA. Marico's Pondicherry unit was hono
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 Websites: www.niharnaturals.com www.beardo.in www.parachuteadvansed.com www.mycocosoul.com www.mylivonmysalon.com www.saffola.marico.in www.saffolalife.com w