Marico creates Rs 104 cr impairment charge for investment in youth portfolio

FMCG major Marico today said it has made a provision of Rs 104 crore towards impairment of investment made for the acquisition of a 'youth portfolio' in 2012.

"The company has made an assessment of the fair value of investment made in its subsidiary, Marico Consumer Care Ltd (MCCL), towards the acquisition of the youth portfolio in 2012.

"During the quarter and year ended March 31, 2018, the company has made a provision of Rs 104 crores towards impairment of investment made in MCCL, after taking into account the past business performance, prevailing business conditions and revised expectations of the future performance," Marico said in an investor update.

In 2012, Marico had acquired personal care brands such as Set Wet and Zatak, and hair lotion brand Livon from Reckitt Benckiser which the company calls its youth portfolio.

Marico's youth brands portfolio includes categories such as hair gels, deodorants, hair gain tonic and leave-in serums.

Shares of the company dropped by more than 4 per cent to settle the day at Rs 316.90 following the announcement.

Marico today reported a 7.19 per cent increase in consolidated net profit at Rs 183.2 crore for the fourth quarter ended March 31, 2018.

The company had reported a net profit of Rs 170.91 crore in the January-March quarter a year-ago.

Marico' total income during the quarter under review stood at Rs 1502.97 crore. It was at Rs 1344.43 crore for the corresponding quarter of last fiscal.