Marico Q1 net profit dips 6% to Rs 365 cr; sales up 31% to Rs 2,525 cr

FMCG firm Marico Ltd on Friday reported a 5.92 per cent decline in consolidated net profit at Rs 365 crore for the quarter ended June 2021.

The company had posted a net profit of Rs 388 crore in the April-June period a year ago, Marico said in a BSE filing.

However, revenue from operations of the Mumbai-based firm rose 31.16 per cent to Rs 2,525 crore, as against Rs 1,925 crore in the corresponding quarter of the previous year.

According to the company, its profit after tax was down "due to exceptional gains in the base quarter."

"In Q1FY22, Revenue from Operations grew by 31 per cent YoY to Rs 2,525 crores with underlying volume growth of 21 per cent in the domestic business and constant currency growth of 21 per cent in the international business," Marcio said in a post-earnings statement.

Total expenses were at Rs 2,085 crore, up 38.90 per cent from Rs 1,501 crore earlier. Domestic sales climbed 34.59 per cent to Rs 1,992 crore compared to Rs 1,480 crore in Q1 FY21.

"In India, we witnessed positivity in the demand sentiment until late April, when stricter mobility restrictions were once again imposed in various states in response to the rising severity of the second COVID wave," it said.

Unlike the first wave, the pandemic affected deeper pockets of the country, but business was not as disrupted as in the last year given that supply chains were able to weather localised and staggered lockdowns and retail stores operated for certain number of hours during the day, it added.

"Traditional trade continued to perform well with rural and urban growing in tandem. E-Commerce maintained its accelerated growth trajectory, while Modern Trade could only recover partially as lockdown-like curbs were back into effect in various states. CSD grew on a low base," it said.

Revenue from the international business rose 19.77 per cent to Rs 533 crore as against Rs 445 crore a year earlier.

"The International business posted a strong broad-based recovery relative to the varying levels of impact in each of the markets in the base quarter. This was despite signs of moderation in demand witnessed due to the resurgence of COVID in Bangladesh and Vietnam towards the end of the quarter," it added.

In a separate filing, the company said its board on Friday approved the appointment of Milind Barve as additional director (independent) for a term of five years with effect from August 2, 2021.

It has also noted the resignations of K B S Anand and Sanjay Dube as independent directors of the company.

Shares of Marico Ltd on Friday settled at Rs 546.35, up 3.53 per cent from the previous close.