Marico

“Broadly at this point in time with whatever visibility we have from, let's say, next year perspective, you can take about 10% to 10.5% of A2S.”

“We are confident to deliver mid-twenties EBITDA growth up from around 20% that we had estimated earlier as we now have better visibility of the full year picture.”

“Now whether it sort of increases the guidance for FY28, not really, we are saying for FY28 or '29 we stick by our guidance of mid-teens growth.”

“No, that's what we had alluded earlier also that our expectation is that from here on, after this year, the EBITDA growth should be at least mid-teens.”

“India Business volume growth is also expected to touch double digits for the full year.”

“Parachute which has delivered volume growth of 13%, its highest in 22 quarters. The franchise gained around 570 basis points of volume market share and reached a new high of 60%.”

“What we did was we did selective price drops in loyalty packs and that reversed the down trading, which we had been witnessing last year because of inflation.”

“Value-Added Hair Oil delivered its sixth consecutive quarter of stellar growth with a 21% value growth and an 80-basis point gain in value market share on a MAT basis.”

“We rationalized the supply of select low-margin variants, which led to a high single-digit volume decline, while revenue grew 6%. This process will get completed over the next 2 or 3 quarters.”

“Foods grew 45% and crossed annualized revenue run rate of INR1,500 crores, a significant jump from the last quarter.”

“So as of now we are seeing resilient consumption as far as India is concerned, and I think if you look at the overall results of all the companies in the FMCG sector.”

“And lastly, I think organized competitive pressure given some of them have other priorities or it could be also because of the hyperinflation that happened, so there has been no irrational competitive activity also.”

“But usually, in tough times, it is the smaller players, regional players who get squeezed and the larger players consolidate.”

“I think because we have visibility that next year will not be major deflationary, we know if we can deliver this volume growth automatically that value growth can happen.”

“Gross margin expanded by approximately 600 basis points year-on-year. This improvement was driven by favorable portfolio mix. improving profitability across our new growth engines and the benefit of softer copra prices.”

“Advertising and promotion expenditure increased by 44% during the quarter as we continue to invest in strengthening the long-term equity of our core franchises while accelerating the scale- up of our new growth engines. Even as we significantly stepped up our A&P investments, EBITDA margin expanded by 200 basis points to 18.2%.”

“On the cost front, copra prices have stayed rangebound about 35% below last year's peak. Crude linked derivatives and vegetable oils, however, have risen further on the back of geopolitical developments and weather-related concerns.”

“We will draw on the pricing power of our brands and have distinct advantage in the form of softer copra prices and an aggressive cost management program to help cushion crude-linked inflation.”

“So I think it's a combination of 4, 5 things. Obviously, a favorable mix where we are consistently ensuring that we keep on chopping things which are not profitable in the long term.”

“Secondly, because of SETU and our rhythm we believe in doing 3.5% sale every day. Our overall pipeline in the trade, pipeline with the distributor is one of the thinnest in the industry today.”

“So, we have stopped all month end, quarter end, there are no skews. And that means that I don't have to give extra trade loads in the month end to do our numbers or at quarter end to do our numbers.”

“So similarly, this is based on organic, any inorganic will be an upside.”

“And therefore, we see holistically, we will operate and participate in protein through atleast four brands, which is Saffola, Cosmix, Plix and True Elements.”

“They are both tracking ahead of our acquisition assumptions. I think Cosmix is also very profitable, as you know, makes high-teens operating margins.”

“It is going to move into VMS in a structural way very soon.”

“And other good news is that I think the breakeven of 4700BC will be definitely significantly ahead of our target dates.”

“In India, obviously, we are mindful of the demand situation if in certain states, there has been a little bit of deficient rainfall more than others.”

“But then at this current crude levels, whenever we are giving an outlook, we have baked in a current crude level. And we are not hoping in the next 6 months, things will drastically improve.”

“Geopolitical developments in West Asia led to higher energy prices and renewed concerns around supply chain and inflation.”

“We are with the very fact that if crude continues to be at high level, whether there will be more inflation in some of the international markets and the supply chain complexity”

“Consolidated revenue grew 13%, driven by 10% volume growth in India business and 13% constant currency growth in the international business.”

“EBITDA grew 27% while PAT increased 31%, marking the highest profit growth in the last 50 quarters.”

“Summing up, it has been a very strong first half, with Revenue, EBITDA and PAT increasing by 18%, 26% and 28%, respectively.”

“We estimate that through SETU we have been able to drive 1% to 2% incremental volume growth in the business over the last couple of years with VAHO being the key portfolio that benefited from this and now PCNO getting some benefits.”

“We are now embarking upon SETU 2.0 in India with a focus on AI and tech-led smarter growth and GTM expansion of our premium core and digital brands.”