Marico advertisement spending grew by 13% to Rs 952 crore in FY2024 from Rs 842 crore in FY2022-23, the company informed stock exchanges in its latest annual report.
According to the company, the domestic segment recorded a turnover of Rs 7,132 crore, down 3% YoY, mainly impacted by pricing corrections in key portfolios. Whereas, the operating margin of the company stood at 22.4% in FY24 vs 19.8% in the previous year.
Marico’s ‘blue bottles Parachute oil’ delivered 1% volume growth in FY24. The non-focused Coconut Oil portfolio had a flattish year. Overall, the volume market share of the Coconut Oil franchise (including Nihar Naturals and Oil of Malabar) was at 63% as of March 2024.
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Saffola Edible Oils recorded low-single-digit volume growth in a year marked by a sharp decline in revenues, due to multiple rounds of pricing corrections in the portfolio in response to dropping vegetable oil prices.
Whereas, foods delivered a 23% growth in FY24 in value terms led by double-digit growth in organic core franchises and increasing traction across newer launches during the year. On the other hand, Saffola Oats emerged as India’s #No.1 oats brand as per the data reported by Kantar Household Panel. Saffola Masala Oats also registered healthy penetration-led growth, it added.
According to the company, the composite share of Foods and Premium Personal Care (including Digital-first brands) in domestic revenues reached approximately 20% in FY24 up from around 15% in FY2023.
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Marico has aimed to achieve more than 20% CAGR for ‘foods’, aiming to scale it to 2x its current size by FY27. Besides, the company has also anticipated the domestic revenue share of the foods and Premium Personal Care portfolios to rise to 25% (approx) by FY27.
The Consumer Packaged goods company reported a net profit of Rs 1,481 crore in FY24 up from 1,302 in FY2023. Marico Limited posted a consolidated turnover of Rs 9,653 crores ($ 1.2 billion), with underlying domestic volume growth at 2% and constant currency growth in the international business at 9% in the last fiscal year. The Operating profit stood at Rs 2,026 crore, up 12% over the last year. The recurring net profit was at Rs 1,470 crore, up 15% over the last year.
Marico embarked on a digital transformation journey in 2019. The company said that at least a fourth of its media ad spends were on digital platforms with higher indexation in premium/urban-centric portfolios such as ‘Premium Personal Care and Foods in the previous fiscal year.
The FMCG major has roped in new-age technologies and platforms like Cloud-based ERP/PLM, LC/NC, Data Lake, RPA Bots, and virtual assistants to improve inventory and product traceability. “Our foray into Gen AI has helped improve consumer insights, efficient workflows, faster turnarounds, and employee engagement,” Marico said in its annual report.
“In the year under review, the company’s performance has reaffirmed the underlying strength of its business model and steadfast focus on strategic priorities, while contending with a slower-than-expected pace of recovery in consumption trends, especially in rural, and subdued sentiment in the general trade channel in India, and
macro-economic headwinds in particular overseas markets,” Marico Chairman Harsh Mariwala said.
“As we move forward, the increasingly dynamic business landscape underscores the importance of agility and forward-thinking in distribution models, innovation, brand building, and digital marketing capabilities,” he added.