Marico Limited · NSE:MARICO
Marico — Q2 FY25 Earnings Presentation
30 slides from Marico's earnings presentation, October 2024
Slide 1: Q2 FY25 Results
Q2 FY25 Results OCTOBER 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 16 22 3 Marico Information classification: Official
Slide 4: Rural sustains lead over urban | Pricing growth trending up as commodity prices rise
Rural sustains lead over urban | Pricing growth trending up as commodity prices rise FMCG Sector: Rural vs Urban Volume Growth Index FMCG Sector: Price Led Growth Food and retail inflation spike in September; trend to be monitored in the near term 2x 2x 1x Above-normal rainfall in most regions in th
Slide 5: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 16 22 5 Marico Information classification: Official
Slide 6: Sequential uptick in growth in the domestic business | International business continues robust show
Sequential uptick in growth in the domestic business | International business continues robust show Q2 FY25 (YoY) ~30 bps Domestic International Consolidated Q2 Gross Margin expansion YoY 5% 13% 8% Volume Growth Constant Currency Revenue Growth Growth 8% Q2 A&P Spend Growth YoY 19.6% 5% 10% Consolid
Slide 7: Double-digit growth in PCNO | Saffola Oils back in positive terrain | VAHO bottoming out
Double-digit growth in PCNO | Saffola Oils back in positive terrain | VAHO bottoming out Parachute Coconut Oil Saffola Edible Oils Value Added Hair Oils (33% of Domestic Revenues) (18% of Domestic Revenues) (20% of Domestic Revenues) 4Y Vol. CAGR : Mid-single digit in Edible Oils 4% 10% Flat volumes
Slide 8: Strong scale-up in Foods continues | Annualized run rate in Q2 crosses ~₹1000 cr.
Strong scale-up in Foods continues | Annualized run rate in Q2 crosses ~₹ 1000 cr. Click on the image above to watch the campaign Q2 Value Growth 28% 8 Marico Information classification: Official
Slide 9: Premium Personal Care: Trending ahead of aspirations
Premium Personal Care: Trending ahead of aspirations Serums | Male Grooming | Skin Care Digital-First Brands ~₹300 cr. H1 ARR >₹525 cr. Q2 Exit ARR 9 Marico Information classification: Official
Slide 10: Parachute Coconut Oil: Namma Soil, Namma Coconuts, Namma Parachute
Parachute Coconut Oil: Namma Soil, Namma Coconuts, Namma Parachute Watch the journey of Parachute as it travels from the roots of Tamil Nadu to our homes, bringing with it the essence of our beloved coconuts. Embodying the purity and spirit of our land, Parachute is truly one of our own, crafted wit
Slide 11: Saffola Step-Up For Your Heart: World Heart Day 2024 | Saffola Oats celebrates Onam
Saffola Step-Up For Your Heart: World Heart Day 2024 | Saffola Oats celebrates Onam A person in a garment Description automatically generated Click on the image above to watch the campaign 11 Marico Information classification: Official
Slide 12: Visible brand building investments in VAHO towards reinvigorating growth
Visible brand building investments in VAHO towards reinvigorating growth A person holding a fan and a bottle of suntan lotion Description automatically generated Click on the image above to watch the campaign 12 Marico Information classification: Official
Slide 13: Project SETU: Strong governance ensuring sustainable expansion
Project SETU: Strong governance ensuring sustainable expansion Execution at state level on track | Leveraging technology to identify white spaces for outlet expansion Leading to strengthening of the core portfolios and distribution gains in 10 opportunity portfolios No. of states kicked off in H1 De
Slide 14: Resounding resilience in Bangladesh amidst challenging conditions | MENA and SA on strong footing
Resounding resilience in Bangladesh amidst challenging conditions| MENA and SA on strong footing Bangladesh Vietnam MENA South Africa 8% Healthy growth in core and new franchises 7% HPC demand recovery underway 43% Robust growth in Gulf and Egypt 20% All-round growth in Hair care and Q2 CCG Q2 CCG Q
Slide 15: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 16 22 15 Marico Information classification: Official
Slide 16: 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 16 Marico Information classification: Official
Slide 17: 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 18: 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 19: 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 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 Double-digit 14% CCG momentum 12% 8% 10% 5% 4% 7% 8% 3% 6% 4% 0% 2% 0% Q4FY24 Q1FY25 Q2FY25 H2FY2
Slide 21: Index
Index Macro Overview Performance Outlook Financials Highlights 4 6 16 22 21 Marico Information classification: Official
Slide 22: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (in ₹ cr.) P&L Particulars Q2FY25 Q2FY24 Change (%) H1FY25 H1FY24 Change (%) Revenue from Operations 2,664 2,476 8% 5,307 4,953 7% Material Cost 1,311 1,226 7% 2,573 2,465 4% ASP 290 268 8% 530 480 10% Employee Cost 213 187 14% 416 368 13% Other Expenses 328 298
Slide 23: Annexure 1: Operating Margin Structure for Marico Limited (Consolidated)
Annexure 1: Operating Margin Structure for Marico Limited (Consolidated) (as a % of Revenues) Q2FY25 Q1FY25 Q2FY24 H1FY25 H1FY24 Material Cost (Raw + Packaging) 49.2% 47.7% 49.5% 48.5% 49.8% Advertising & Sales Promotion (ASP) 10.9% 9.1% 10.8% 10.0% 9.7% Personnel Costs 8.0% 7.7% 7.6% 7.8% 7.4% Othe
Slide 24: Annexure 2: Working Capital
Annexure 2: Working Capital Key P&L Capital Efficiency Ratios Particulars Q2FY25 Q1FY25 Debtors Turnover (Days) 42 38 Inventory Turnover (Days) 47 47 Net Working Capital (Days) 39 28 Note: The Company has maintained healthy working capital ratios through the year. 24 Marico Information classificatio
Slide 25: Annexure 3: Movement of Key Raw Material Prices
Annexure 3: Movement of Key Raw Material Prices Copra YTD: +25% YoY Rice Bran Oil YTD: +7% YoY Key P&L x x x 0.8x Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Liqu
Slide 26: Annexure 4: Market Shares in Key Categories in the India Business - MAT Sep'24
Annexure 4: Market Shares in Key Categories in the India Business - MAT Sep’24 Franchise ~MS% Rank ^ Coconut Oil Franchise 63% 1st ^ Parachute Rigids within Coconut Oil 54% 1st * Saffola Oats 41% 1st * Value Added Hair Oils 28% 1st ^ Post wash Leave-on Serums 48% 1st *^ Hair Gels/Waxes/Creams 52% 1s
Slide 27: Annexure 5: ESG Performance Snapshot (Q2 FY25)
Annexure 5: ESG Performance Snapshot (Q2 FY25) Emissions & Energy Water Stewardship Circular Economy Sustainable Agriculture Social Value Creation • 80.75% reduction • 54.5 % reduction in • 95.3% Parachute Kalpavriksha • About 14 lakh of students impacted and 2.5 in GHG water consumption recyclable
Slide 28: Annexure 6: Recent ESG Recognitions
Annexure 6: Recent ESG Recognitions Marico ranked among the Top 5 Companies Leading the Sustainability Journey for the FMCG Sector by BW BusinessWorld. Marico awarded as “Gold Winner” - Times Marico awarded as “Organisation with Now Global Sustainability Alliance SDG Sustainable Practices” at the In
Slide 29: Annexure 7: Awards and Recognitions
Annexure 7: Awards and Recognitions Marico has won the Global CSR, Marico has been honored as the Sustainability, and ESG Awards 2024 'Best Organization for Customer from Brand Honchos for Best Water Experience' by the ET-Times Group. Management Initiative of the Year. Marico was recognized by ET No
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