Marico Limited · NSE:MARICO
Marico — Q1 FY25 Earnings Presentation
36 slides from Marico's earnings presentation, Aug 5, 2024
Slide 1: Exchange cover letter for Information Update Q1 FY25
August 5, 2024 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 FY25 Results
Q1 FY25 Results AUGUST 2024 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 14 21 3 Marico Information classification: Official
Slide 5: 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 6: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 14 21 5 Marico Information classification: Official
Slide 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: International business records 10% CCG in Q1
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 14: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 14 21 13 Marico Information classification: Official
Slide 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 14 21 20 Marico Information classification: Official
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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
Slide 31: Marico – Information Update for Q1FY25
Marico – Information Update for Q1FY25 (Quarter ended June 30, 2024) Executive Summary: Consolidated Results Particulars (₹ Cr) Q1FY25 YoY Growth Revenue from Operations 2,643 7% EBITDA 626 9% EBITDA Margin (%) 23.7% Up 50 bps Profit After Tax (excl. one-offs) 464 12% Domestic Volume Growth (%) 4% I
Slide 32: Marico – Information Update for Q1FY25
Marico – Information Update for Q1FY25 (Quarter ended June 30, 2024) • Value-Added Hair Oils declined 5% in value terms amidst persistent sluggishness and competitive headwinds in the bottom of the pyramid segment. Secondary sales and offtakes grew in low single digits during the quarter. Mid and pr
Slide 33: Marico – Information Update for Q1FY25
Marico – Information Update for Q1FY25 (Quarter ended June 30, 2024) Sustained investment towards driving accelerated growth in new businesses has led to a significant shift in the revenue construct of the domestic business since FY20. We will continue to aggressively diversify the portfolio through
Slide 34: Marico – Information Update for Q1FY25
Marico – Information Update for Q1FY25 (Quarter ended June 30, 2024) 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 35: Marico Limited – Q1FY25 Results
Marico Limited – Q1FY25 Results Consolidated Revenue grew 7% Domestic Volume Growth moves up to 4% Foods and Digital-first portfolios sustain accelerated scale up International business delivers broad-based 10% CCG EBITDA up 9% YoY; PAT up 12% YoY on like-to-like basis In Q1FY25, Revenue from Operat
Slide 36: Earlier this month, the Company announced a collaboration with Kaya Limited
Earlier this month, the Company announced that it will collaborate with renowned dermatological solutions provider, Kaya Limited, to advance its play in science-backed personal care. Under this arrangement, the Company will have exclusive rights to scale up Kaya’s range of efficacy-based personal ca