Marico Q4 earnings impress with 20% YoY revenue growth, driving its share price up 5%—the best single-day gain in 11 months.
As of 10:00 AM on May 5, 2025, Indian equity benchmark indices were trading with gains of over half a per cent. The Sensex inched closer to the psychological 81,000 mark, while the Nifty moved towards the 24,500 level. However, the Nifty Bank index remained below the neutral line.
Among sectoral indices, the majority were in positive territory, with the Nifty FMCG index standing out, having gained 1.23% by 10:00 AM. The top performer within the index was Marico Ltd., whose share price rose approximately 5%, registering its sharpest single-day gain since June last year—an 11-month high.
The key catalyst for this surge appears to be the company’s robust FY25 performance, during which revenues crossed the ₹10,000 crore milestone. Furthermore, India volume and revenue growth reached a 14-quarter high.
In Q4FY25, Revenue from Operations stood at ₹2,730 crore, up 20% year-on-year, supported by a 7% volume growth in the India business and a 16% constant currency growth in the international business.
For FY25, total Revenue from Operations was ₹10,831 crore, marking a 12% year-on-year increase. The India segment saw 5% volume growth, while the international segment maintained a healthy 14% constant currency growth.
The India business continued to deliver sequential improvement in volumes, with ~95% of the portfolio gaining or sustaining market share, and ~80% maintaining or improving penetration on a MAT (Moving Annual Total) basis. India revenues rose to ₹2,068 crore in Q4, a 23% year-on-year increase, aided by price hikes in key portfolios in response to elevated input costs.
The international business performed ahead of internal targets. Bangladesh maintained strong momentum with double-digit growth, while the MENA and South Africa regions sustained their rapid growth trajectories.
Despite a ~300 bps contraction in gross margin—mainly due to higher copra and vegetable oil prices—strategic pricing actions helped offset some of the pressure. Advertising and promotion (A&P) expenditure rose 35% year-on-year in Q4, in line with the company’s intent to strengthen its brand portfolio and accelerate diversification.
EBITDA increased by 4%, though the EBITDA margin declined ~260 bps to 16.8%. Profit after tax (PAT) rose 8% year-on-year. At its board meeting held on 2 May 2025, the company declared a final dividend of ₹7.00 per equity share of ₹1 each on a paid-up capital of approximately ₹129.5 crore.
The management has shared an optimistic growth outlook across both domestic and international businesses, underpinned by factors such as category expansion, strengthened channel partnerships, premiumisation, and improved profitability.
Gradual improvement in core category growth is anticipated, supported by:
Initiatives like Project SETU, which aims to enhance direct reach, are expected to improve product availability and market penetration in underserved areas. Additional support to General Trade (GT) partners will also help solidify market position.
The company remains committed to driving differential growth in its premium and urban-centric portfolios, particularly through modern trade and e-commerce platforms.
These segments have accelerated significantly, with their combined contribution to India’s Net Contribution (NC) rising nearly fivefold compared to FY22.
Combined, these portfolios are expected to contribute around 25% of India revenues by FY27.
The company has structurally improved gross margins in the Foods segment by ~1000 bps over FY24 and FY25 through operational leverage and efficiency gains.
Despite global headwinds such as macroeconomic uncertainty and currency devaluation, the international business delivered consistent double-digit growth in constant currency terms.
A clear strategic shift towards premiumisation is evident, with expansion into:
These premium categories have grown at a 24% CAGR from FY21 to FY25, and their revenue contribution has risen from ~20% to ~29%. The company aims to sustain 25%+ growth in this segment in the medium term.
The company aims to sustain double-digit revenue and operating profit growth in FY26, driven by:
Disclaimer: The article is for informational purposes only and not investment advice.
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