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In Q2 FY25, FMCG major Marico witnessed rural growth reaching double the pace of urban growth YoY (YoY). Marico’s profit for Q2 FY25 increased by over 20.3% year-on-year to Rs 430 crore as against Rs 360 crore in the year-ago period. The company’s operating revenue stood at Rs 2,664 million in the second quarter of FY25, up 7.6% annually from Rs 2,476 million in the same period last year.
The domestic business maintained its volume growth trajectory with healthy trends across most core and new franchises. Domestic revenue grew 8% year-on-year to Rs 1,979 crore as volume growth was offset by price increases in the coconut oil portfolio and a favorable reversal in the price cycle for safola oil. Compared to general trade, alternative channels remained prominent.
The international business demonstrated sustained strength in all key markets, supported by strong fundamentals and durable growth potential.
Gross margin increased by 30 bps year-on-year as the impact of higher input costs in the core portfolio of domestic businesses was offset by healthy margin improvements in digital-first franchises in India and international businesses. A&P spending increased 8% year over year as the company continued to invest in strategic brand building. EBITDA margin was 19.6%, down 50 bps year over year, and EBITDA increased 5% year over year.
“We ended the first half of the financial year on a fairly positive note, with the growth trajectory of our business heading in the right direction. Our portfolio of food and digital-first brands continues to grow impressively, and our international business shows notable strength despite challenging operating conditions in some markets. Masu. At the same time, we are focused on achieving our growth targets for this year,” said Saugata Gupta, MD and CEO of Marico.
