Marico Q4 net profit down 50.6 pc to Rs199 cr

FMCG firm Marico Ltd on Monday reported a 50.62 per cent decline in consolidated net profit at Rs 199 crore for the fourth quarter ended March 2020 due to COVID-19 related disruptions.

The company had posted a net profit of Rs 403 crore in January-March quarter a year ago, Marico said in a BSE filing.

Its net sales dropped 7.02 per cent to Rs 1,496 crore during the quarter under review as compared with Rs 1,609 crore in the corresponding quarter of previous year.

"The company witnessed some encouraging signs in demand in its core portfolios until early March, which sharply diminished amidst COVID-19 outbreak as economic activity progressively slowed and adherence to social distancing norms became an imperative," Marico said in a post-earning statement.

The company's total expenses decreased 7.39 per cent to Rs 1,265 crore as against Rs 1,366 crore a year ago.

During the quarter under review, domestic sales fell 7.58per cent to Rs 1,146 crore as against Rs 1,240 crore in the corresponding period of previous fiscal.

"The domestic business delivered a turnover of Rs 1,146 crore (USD 158 million), down 8 per cent on a year-on-year basis, impacted by the disruption in supply chain operations due to lockdowns enforced in the month of March to contain the outbreak of COVID-19," the company said.

"The business would have delivered flattish revenue growth in the quarter, had these disruptions not occurred," it added.

Revenue from international business was at Rs 350 crore during Janury-March, down 5.14 per cent from Rs 369 crore a year earlier.

"Marico's international business declined by 6 per cent in Q4FY20 in constant currency terms, due to consumption slowdown and COVID-19 led restrictions affecting growth in the overseas markets," it said.

For the fiscal year 2019-20,Marico's net profit was down 7.78 per cent to Rs 1,043 crore as compared with Rs 1,131 crore in the previous year.

Its sales during 2019-20 stood at Rs 7,315 crore, marginally lower than Rs 7,334 crore in 2018-19.

Commenting on the results, Marico MD & CEO Saugata Gupta said, "At this time, we are focusing on the movement of food and grocery items of daily use to our consumers, subject to all safety norms.

"While persistently soft consumption trends have led to muted volume growth in FY20, we have continued to gain market share in our core franchises on the back of our trusted leader brands," he added.

On the outlook, he said Marico will continue to invest in its core portfolio, while also "adapting to shifts in consumer behaviour that may be brought about by this unprecedented human crisis".

Shares of Marico Ltd on Monday closed 0.87 per cent lower at Rs284.40on the BSE.