Q1 Results: Marico To Expand Margin, Grow Volumes By 6-8% In 2019-20
Marico is introducing smaller packages and launching pricing strategies to restore growth, says CFO Vivek Karve.
Marico Ltd. expects to expand its margins and grow volumes by 6-8 percent in 2019-20, said its Chief Financial Officer Vivek Karve on Friday.
The company has maintained its forecast for medium-term volume growth between 8-10 percent in the domestic market, he said.
The consumer goods maker’s earnings for the quarter ended June was in line with analysts’ estimates. Profit rose 21.2 percent year-on-year to Rs 315 crore in the June quarter, backed by robust sales of Parachute coconut oil and its premium hair care range.
Karve called the Marico Q1 results “reasonable” and “resilient” in the backdrop of a subdued economic environment. While Marico’s edible oil brand Saffola is witnessing stress in maintaining consistent growth sequentially, Karve said the company is introducing smaller packages and launching pricing strategies to restore growth.
Key Takeaways From The Interview
- Maintain focus on franchise growth, even if it impacts short-term profitability.
- To invest in advertising and sales promotion.
Marico Q1 Results 2019-20: Key Highlights (YoY)
- Revenue rises 7 percent to Rs 2,166 crore.
- Ebitda jumps 26 percent to Rs 461 crore.
- Ebitda margin expands to 21.3 percent from 18.1 percent.
Watch the full interview here: