Marico Q2 Results FY2023, PAT at Rs. 301 Crores

On 4th November 2022, Marico announced its quarterly results for the second quarter of FY2023.
 

Q2FY23 Performance updates:

-   Revenue from Operations grew by 3% YoY to Rs. 2,496 crores with underlying volume growth of 3% in the domestic business and constant currency growth of 11% in the International business. 
- EBITDA margin stood at 17.3%, down marginally YoY, and EBITDA was up 2% YoY at Rs. 432 crore
- PAT was down 3% YoY at Rs. 301 crores, mainly due to losses on translation of foreign currency receivables and higher effective tax rate (ETR). 

Business Highlights:

- Parachute Rigids was down 3% in volume terms (down 11% in value terms) mainly due to muted consumption trends and sluggishness in loose to branded conversions as softening in copra prices extended beyond expectations. In the given market context, Parachute held its market share in volume terms and gained 20 bps in value MS on MAT basis
- Value Added Hair Oils posted value growth of 2%, owing to the downtrading and weak consumer sentiment, especially in rural. However, growth trends in the franchise remained largely in line with the overall HPC category
- The Saffola franchise, comprising Refined Edible Oils and Foods, grew 4% in value terms, subdued by substantial price cuts in Saffola Oils over the last few months.
- The food segment grew by 26% in value terms with healthy growth in the Oats franchise and sustained traction in some of the recent introductions. Saffola Oats maintained its strong leadership position in the Oats category with 320 bps value MS gain on MAT basis. The franchise is poised to reach revenues of Rs 650 crores.
- Premium Personal Care and Digital-first portfolios (ARR nearing Rs. 250 crores) continued to clock high double-digit growths. Beardo and Just Herbs are scaling up in line with expectations.
- Copra prices were down 4% sequentially and 20% YoY. With seasonal supplies slowing down, prices should remain range-bound in the near term. 
- Rice Bran oil was down 15% sequentially and 11% YoY. However, vegetable oil prices have firmed up in the last fortnight of October and are likely to be volatile in the near term. Crude derivatives such as Liquid Paraffin (LLP) and HDPE were up 48% and 20% YoY.
- Bangladesh clocked 10% constant currency growth. The newer portfolios of Baby Care and Shampoos continued to supplement growth in the core franchises.
- South East Asia grew 10% in constant currency terms, led by strong HPC growth in Vietnam. MENA and South Africa grew 11% and 16% in constant currency terms.

Marico share price dropped by 6.36%.