Ranvir’s Portfolio

Marico –

Q4 and FY 24 results and concall highlights –

Q4 outcomes –

Revenues – 2278 vs 2240 cr, up 2 pc
EBITDA – 442 vs 393 cr, up 12 pc ( margins @ 19 vs 18 pc )
PAT – 320 vs 305 cr

Domestic volume growth @ 3 pc. International constant currency growth @ 10 pc

FY 24 outcomes –

Revenues – 9653 vs 9764 cr
EBITDA – 2026 vs 1810 cr ( margins @ 21 vs 19 pc – highest ever )
PAT – 1481 vs 1302 cr, up 14 pc

Parachute franchise reported a volume growth of 2 pc in FY 24

Saffola Oils grew volumes in mid-single digits. However, the value decline was 16 pc due steep fall in prices

Value Added Hair Oils ( VAHO ) reported a 7 pc value de-growth in FY 24

Premium personal care products like – Livon, SetWet clocked 300 cr revenue run rate in Q4

Digital first brands like – Beardo, CocoSoul, Just Herbs – clocked 450 cr revenue run rate in Q4

Foods portfolio ( led by Saffola branded – Oats, Munchiez, Honey, Soya Chunks, Peanut Butter , PLIX branded products etc ) grew by 24 pc in Q4 with a massive 8 pc gross margin expansion

Company aims to double the size of foods portfolio and Digital first brands in next 3 yrs along with further margin expansion

Current revenue share of foods business in the company is @ 15 pc. Aim to take it to 25 pc by end of FY 27

Current revenue share of Bangladesh in the international business is 44 pc. Aim to bring it down to 40 pc by end of FY 27

Company has rolled out project Setu wef Q1 FY 25 – laying a 3 yr roadmap to improve their direct reach from 10 lakh outlets to 15 lakh outlets

Scouting for inorganic opportunities to accelerate company level growth

Rural growth showing visible uptick in Q4

Have increased prices by 6 pc across the Parachute portfolio due increasing copra prices

Expect domestic revenue growth to be greater than volume growth wef Q1 FY 25

Expecting the Bangladesh business to grow in double digits in FY 25

The price cuts in Saffola Edible Oils will anniversarize towards the end of Q1

Have seen hyper competition in the economy segment in Value added hair oils in FY 24. Company hopes that such high intensity should abate in FY 25

Company hopes to further improve its margins over next 3-4 yrs driven by – further scale up of digital brands, higher share of revenues from higher gross margin products and kicking in of operational leverage in Online and International business

It is extremely important for company to expand its direct reach in order to grow their newer / challenger brands. Traditional distributor led models only focus on those SKUs / Brands that are fast moving. Therefore, its imperative for the company to keep expanding its direct distribution reach to give oxygen to new product introductions

Disc: not holding, not SEBI registered, posting for learning purposes