Marico Limited · NSE:MARICO
Marico — Q2 FY22 Earnings Presentation
26 slides from Marico's earnings presentation, October 2021
Slide 1: Q2 FY22 Results
Q2 FY22 Results OCTOBER 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 Q2 Performance Strategy and Financials Highlights Outlook 4 6 16 20 3 Marico Information classification: Official
Slide 4: Improving Macro Narrative as the Pandemic Recedes Again, but Rural Growth Decelerates
Improving Macro Narrative as the Pandemic Recedes Again, but Rural Growth Decelerates • Daily new COVID cases drop to less than 20k - active • Mobility above pre-pandemic levels for the caseload lowest since March 2020 first time since the onset of the pandemic • Vaccination rates pick up - three ou
Slide 5: Index
Index Macro Context Q2 Performance Strategy and Financials Highlights Outlook 4 6 16 20 5 Marico Information classification: Official
Slide 6: Strong Volume led Revenue Growth in both India and International continues
Strong Volume led Revenue Growth in both India and International continues Q2 FY22 (YoY) 9% 2-Year India India International Consolidated Volume CAGR 8% 24% 13% 14% 22% Volume Revenue Constant Revenue Revenue growth growth Currency growth growth growth 15% 2-Year Consol. Revenue CAGR 17.5% 9% 8% Con
Slide 7: India: 2-year Volume CAGR in line with medium term targets | Market Share Gains Continue
India: 2-year Volume CAGR in line with medium term targets | Market Share Gains Continue 24% 8% 90%+ Portfolio gaining MS on MAT basis Volume Growth Value Growth • Despite moderation in pace of growth, rural outpaces urban during the quarter and on 2-year CAGR basis • Double digit volume growth in A
Slide 8: Parachute: Continues to Lead the Way
Parachute: Continues to Lead the Way Q2 FY22 Growth led by Copra Outlook penetration increase Range bound in in core and non-core the near term 7% markets Volume Growth 35% 18% 180 bps 5-7% Volume MS gain Medium-term Value Growth in rigid packs Volume Growth (MAT Sep’21) Aspiration 8 Marico Informat
Slide 9: VAHO: Healthy Momentum Sustained
VAHO: Healthy Momentum Sustained Q2 FY22 16% ~40 bps Stronger traction in Volume MS Gain Mid and Premium Value Growth (MAT Sep’21) segments 9 Marico Information classification: Official
Slide 10: Saffola Franchise: Muted Quarter for Edible Oils; Foods Marches on
Saffola Franchise: Muted Quarter for Edible Oils; Foods Marches on Q2 FY22 46% Saffola Franchise Value Growth Oats franchise Volatility in edible oil prices & lower in-home consumption Gaining impact performance IN-HOME GROWING RELEVANCE OF INCREASED Penetration on 36% COOKING PENETRATION Value Grow
Slide 11: New launches performing in line with expectations | New Saffola Chyawanprash launched
New launches performing in line with expectations | New Saffola Chyawanprash launched Market Shares Steady Extended to select GT in South ~20% market share in MT and Available across channels as well as Saffola D2C Store trending well in GT Tracking inline with internal targets Regularly featuring a
Slide 12: Premium Personal Care: Lights up hope of a sustained recovery
Premium Personal Care: Lights up hope of a sustained recovery As discretionary consumption picks up Livon Serums now ahead of pre-COVID levels • Leverage leadership position of our brands and low penetration of Set Wet portfolio on categories recovery path • Beardo and Just Herbs in line with expect
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: All geographies pitch in, except Vietnam
International: All geographies pitch in, except Vietnam Bangladesh South East Asia South Africa MENA 16% New launches scaling up well -2% Vietnam subdued by 8% 20% CCG CCG COVID surge CCG CCG (on low base) CCG – Constant Currency Growth 14 Marico Information classification: Official
Slide 15: Index
Index Macro Context Q2 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 • Accelerated Vaccination Drive and Expanded Coverage | No Fresh Surge in COVID Caseloads • Normal Monsoon | Continued Government Stimulus • Monitor Rural Consumption Sentiment alongside the impact of Inflation on overall disposable incomes Revenues • Mid-single d
Slide 17: 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 (
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 Sustainable Coconut S Circular Economy Product Responsibility Responsible Sourcing 18 Marico Information classification: Official
Slide 19: Index
Index Macro Context Q2 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 Q2FY22 Q2FY21 Change (%) 8% Revenue from Operations 2,419 1,989 22% Domestic Volume Growth Material Cost 1,392 1,034 35% ASP 194 189 3% Employee Cost 153 137 12% Other Expenses 257 240 7% EBITDA 423 389 9% 13% International EBITDA Margi
Slide 21: Capital Efficiency Ratios
Capital Efficiency Ratios Key P&L Capital Efficiency Ratios Particulars Q2FY22 Q2FY21 Debtors Turnover (Days) 25 26 Inventory Turnover (Days) 52 58 Net Working Capital (Days) 16 31 Return on Capital Employed (%) 40.2 39.3 Return on Net Worth (%) (excl. one-offs) 32.7 32.1 21 Marico Information class
Slide 22: Awards and Recognitions
Awards and Recognitions STRATEGIC INVESTMENT IN JUST HERBS Recognized as one of the Winner of the top 10 BSE 100 Indian cos. in the ‘Future of Workforce Ranked highest amongst FMCG Marico’s Perundurai Unit 'Leadership' category as per the Disruptor’ award companies in CRISIL Limited’s ESG wins the I
Slide 23: Annexure 1: Operating Margin Structure for Marico Limited (Consolidated)
Annexure 1: Operating Margin Structure for Marico Limited (Consolidated) Particulars (% of Revenues) Q2FY22 Q1FY22 Q2FY21 Material Cost (Raw + Packaging) 57.5% 59.0% 52.0% Advertising & Sales Promotion (ASP) 8.0% 6.9% 9.5% Personnel Costs 6.3% 5.9% 6.9% Other Expenses 10.6% 9.1% 12.1% PBDIT margins
Slide 24: Annexure 2: Market Shares in Key Categories in the India Business - MAT Sep’21
Annexure 2: Market Shares in Key Categories in the India Business - MAT Sep’21 Franchise ~MS% Rank ^ Coconut Oils 63% 1st ^ Parachute Rigids within Coconut Oils 53% 1st ^ Saffola – Super Premium ROCP 82% 1st * Saffola Oats (Market leader in Flavoured Oats) 41% 2nd ^ Value Added Hair Oils 37% 1st ^ P
Slide 25: Annexure 3: ESG Performance Snapshot (till Q2 FY22)
Annexure 3: ESG Performance Snapshot (till Q2 FY22) Climate and Water Circular Sustainable Social Value Inclusion & Emissions Stewardship Economy Coconut Creation Diversity • 79.3% reduction in • 100% replenishment • 95% recyclable • 0.213 mn acreage • 0.4 mn+ students impacted • Marico’s I&D GHG of
Slide 26: 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