Marico Limited · NSE:MARICO
Marico — Q2 FY24 Earnings Presentation
26 slides from Marico's earnings presentation, October 2023
Slide 1: Q2 FY24 Results
Q2 FY24 Results OCT 2023 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 16 19 3 Marico Information classification: Official
Slide 4: Demand trends in line with preceding quarter | Gradual recovery likely ahead
Demand trends in line with preceding quarter | Gradual recovery likely ahead Instances of higher food prices and uneven rainfall slows rural recovery Expect Gradual Recovery in Demand Sentiment Retail and Food Inflation FMCG volume growth in Q2 at similar levels One-off spike in vis-à-vis Q1 on 4Y C
Slide 5: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 16 19 5 Marico Information classification: Official
Slide 6: India business resilient in a subdued demand environment | International business extends stellar run
India business resilient in a subdued demand environment | International business extends stellar run Q2 FY24 (YoY) Domestic International Consolidated 685 bps Gross Margin expansion YoY 3% 13% (1%) Volume Growth Constant Currency Revenue Growth Growth 26% YoY Increase in A&P spends 20.1% 15% 17% Co
Slide 7: Gradual recovery underway in core franchises | Pricing deflation tapering off sequentially
Gradual recovery underway in core franchises| Pricing deflation tapering off sequentially Parachute Coconut Oil Saffola Franchise (Edible Oils + Foods) Value Added Hair Oils (31% of Domestic Revenues) (29% of Domestic Revenues) (22% of Domestic Revenues) 4Y Vol. CAGR : 4% 4Y Vol. CAGR : High-single
Slide 8: Premiumization in VAHO - New launches on alternate channels
Premiumization in VAHO - New launches on alternate channels Hair & Care Pro-Blend Oil & Shampoo PA Superfoods-enriched coconut hair oil 8 Marico Information classification: Official
Slide 9: Scale-up in Foods stays on course
Scale-up in Foods stays on course Value Growth Recent Campaigns/Launches Across Foods 25% Saffola Mayonnaise Saffola Peanut Butter Garlic & Herbs with Real Chocolate 9 Marico Information classification: Official
Slide 10: Premium Personal Care: Likely to contribute ~10% of domestic business in FY24
Premium Personal Care: Likely to contribute ~10% of domestic business in FY24 Serums | Male Grooming | Skin Care Digital-First Portfolio ~ ₹ 300 cr. Q2 Run-rate ₹ 350+ cr. Q2 Exit ARR 10 Marico Information classification: Official
Slide 11: New Product Launches in Premium Personal Care
New Product Launches in Premium Personal Care Livon Style Pro Range Parachute Advansed Body Wash and Shower Gel Range 11 Marico Information classification: Official
Slide 12: Impactful brand campaigns driving visibility for core and new businesses
Impactful brand campaigns driving visibility for core and new businesses 12 Marico Information classification: Official
Slide 13: International Business – Robust Performance amid challenging operating environment
International Business – Robust Performance amid challenging operating environment Bangladesh Vietnam MENA South Africa Resilient amidst Steady Double-digit Strong quarter 2% macroeconomic 13% performance in 34% growth in Gulf 23% for Ethnic Hair Q2 CCG Q2 CCG Q2 CCG region and Egypt Q2 CCG Care hea
Slide 14: New Product Launches in the Middle East
New Product Launches in the Middle East Parachute Advansed Shampoo Range Herbsindia Hair Oils Range 14 Marico Information classification: Official
Slide 15: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 16 19 15 Marico Information classification: Official
Slide 16: Summing up: Poised to post all-round improvement in FY24 as envisaged
Summing up: Poised to post all-round improvement in FY24 as envisaged India Vol. Growth – gradual uptick expected India – Diversification Journey International Business (CCG) - Going Strong Q1 impacted Double-digit CCG by one-offs momentum to ~20% 16% continue 3% ~15% 13% 1% ~11% -1% H1FY23 FY23 H1F
Slide 17: 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 17 Marico Information classification: Official
Slide 18: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 16 19 18 Marico Information classification: Official
Slide 19: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (in ₹ cr.) P&L Particulars Q2FY24 Q2FY23 Change (%) H1FY24 H1FY23 Change (%) Revenue from Operations 2,476 2,496 (1%) 4,953 5,054 (2%) Material Cost 1,226 1,407 (13%) 2,465 2,813 (12%) ASP 268 213 26% 480 412 17% Employee Cost 187 166 13% 368 322 14% Other Expens
Slide 20: Annexure 1: Operating Margin Structure for Marico Limited (Consolidated)
Annexure 1: Operating Margin Structure for Marico Limited (Consolidated) Particulars (% of Revenues) Q2FY24 Q1FY24 Q2FY23 H1FY24 H1FY23 Material Cost (Raw + Packaging) 49.5% 50.0% 56.4% 49.8% 55.7% Advertising & Sales Promotion (ASP) 10.8% 8.6% 8.5% 9.7% 8.2% Personnel Costs 7.6% 7.3% 6.7% 7.4% 6.4%
Slide 21: Annexure 2: Working Capital
Annexure 2: Working Capital Key P&L Particulars Capital Efficiency Ratios Q1FY24 Q2FY24 Debtors Turnover (Days) 39 43 Inventory Turnover (Days) 44 46 Net Working Capital (Days) 20 24 Note: The Company has maintained healthy working capital ratios through the year. 21 Marico Information classificatio
Slide 22: Annexure 3: Market Shares in Key Categories in the India Business - MAT Sep'23
Annexure 3: Market Shares in Key Categories in the India Business - MAT Sep’23 Franchise ~MS% Rank ^ Coconut Oil Franchise 62% 1st ^ Parachute Rigids within Coconut Oil 53% 1st * Saffola Oats 42% 1st * Value Added Hair Oils 27% 1st ^ Post wash Leave-on Serums 55% 1st * Hair Gels/Waxes/Creams 53% 1st
Slide 23: Annexure 4: ESG Performance Snapshot (Q2 FY24)
Annexure 4: ESG Performance Snapshot (Q2 FY24) Emissions & Energy Water Stewardship Circular Economy Sustainable Coconut Social Value Creation • 72% reduction in GHG • 100% replenishment • 94% recyclable • 0.33 Mn acreage ▪ 1.69 lakhs teachers emission intensity of water consumed in packaging by wei
Slide 24: Annexure 4: ESG Performance
Annexure 4: ESG Performance A step closer towards net zero emissions! Marico’s manufacturing unit at Sanand has recently established solar rooftop panels that enable the plant to generate 1 megawatt renewable energy (electricity) for operational purposes. www.sustainability.marico.com Dedicated micr
Slide 25: Annexure 5: Awards and Recognitions
Annexure 5: Awards and Recognitions Marico has been recognized among the Marico was awarded the Top 3 Sustainable Quality Manufacturing Companies in the FMCG Award at The Corporate Sector at the Sustainable Titan Awards World Conclave by BW Businessworld Marico's Parachute Marico has been recognized
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 Websites: www.niharnaturals.com www.beardo.in www.parachuteadvansed.com www.mycocosoul.com www.mylivonmysalon.com www.saffola.marico.in www.saffolalife.com w