Marico reports 23% jump in Q1 net profit; says business now nearly normal after huge loss in April

Marico reported a net profit of Rs 388 crore as against Rs 315 crore in April-June quarter a year ago.

Marico Ltd reported a 23.17% on-year increase in its consolidated April-June net profit even as FMCG companies continue to face the headwinds of the coronavirus pandemic. The company said that its net profit stood at Rs 388 crore for the first quarter ended June 30 after sales picked up in May and June. “The domestic business was severely impacted in April due to supply-chain disruptions following the extension of the national lockdown but was able to scale up sequentially in May and June as restrictions were relatively eased,” the maker of Saffola range of edible oils said in a statement on Monday. Further, the company has also witnessed a growth in the market share for 90% of its portfolio items. 

Key takeaways from Q1 results

• Marico reported a net profit of Rs 388 crore as against Rs 315 crore in April-June quarter a year ago.
• The FMCG firm posted its revenue from operations at Rs 1,925 crore during the quarter under review, as against Rs 2,166 crore in the corresponding quarter previous year. The same witnessed a fall of 11.12%.
• The maker of Parachute oil said that its total expenses declined 7.39% to Rs 1,501 crore in Q1FY21, compared to Rs 1,752 crore last fiscal. 
• Marico’s domestic sales were down 14.50% at Rs 1,480 crore, over Rs 1,731 crore in the same period a year ago. 
• The company posted a jump in revenue from the international business, which increased by 2.29% to Rs 445 crore, as against Rs 435 crore a year earlier.

Talking about the changing consumer behaviour in the times of coronavirus pandemic, Marico said that consumers are now increasingly picking neighborhood General Trade stores and e-commerce channels over Modern Trade as social distancing becomes prevalent. Meanwhile, Marico said that now that the company has started to witness recovery in business to near-normal levels, it will now strive to deliver growth, Saugata Gupta, MD & CEO, Marico, said.