NEW DELHI: Amid inflation-induced challenges, FMCG firms Marico and Dabur posted 7% and 8% year-on-year (Y-o-Y) increase in revenues to Rs 2,161 crore and Rs 2517.8 crore, respectively, for the quarter ending March 2022. Net profit, however, increased 13.2% y-o-y for Marico to Rs 257 crore, while slipped 22% y-o-y for Dabur to Rs 294.2 crore.
For Dabur, at the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) were up by 2.5% y-o-y to Rs 453.6 crore in the quarter. Marico’s EBITDA increased from Rs 319 crore to `346 crore in the fourth quarter. Its EBITDA margin was at 16%, as compared to 15.8%.
“The dramatic rise in input costs was the major challenge during the quarter. We responded to this challenge with a mix of pricing actions and cost control measures,” said Dabue CEO Mohit Malhotra.
Marico, in a statement, also said that In India rising inflation levels, exacerbated by geo-political tensions, continued to weigh down the overall consumption sentiment, and even more so in rural areas.
“In the near term, we expect margins to be subdued following the renewed spike in commodity prices due to geo-political tensions, as we will continue to drive rigor in execution and market share gains without compromising on brand building investments to protect short-term margins,” it said adding that the stress on demand and margins is expected to ease towards the second half of next year. While shares of Marico Ltd on Thursday settled at Rs 520.45 on the BSE, up 0.15% from the previous close, Dabur shares tanked 1.55% to settle at Rs 529.20.
FMCG majors’ net profits in fourth quarter
Net profit increased 13.2% y-o-y for Marico to Rs 257 crore, while slipped 22% y-o-y for Dabur to Rs 294.2 crore. While Marico share on Thursday settled at Rs 520.45, up 0.15%, Dabur share tanked 1.55% to Rs 529.20.