Marico sustains volume growth and margins; shows net profit up 22%

Marico, the Indian Group in Consumer Products & Services in the Global Beauty and Wellness space has announced its Q3 results, the quarter ended December 31, 2009 (Q3FY10) which is Net Profit up 22 percent.

The company announced that during the quarter Q3FY10, Marico achieved a turnover of Rs 670 crore, which is a growth of 8% over Q3FY09. The brand however achieved a volume growth of about 14% and revenue growth was lower owing mainly to some reduction in prices to sustain franchise growth while maintaining margins in a scenario of deflation experienced in some of the company's key inputs.

Profit before tax (PBT) is declared to be Rs. 81 crore, a growth of 24% over Q3FY09. Profit after tax of Rs. 62 crore showed a growth of 22% over Q3FY09. The results for Q3FY10 include two items that are not strictly comparable with the corresponding quarter in the previous year.

Adopting conservative principles, the company made a provision of Rs 11 crore towards excise duty on dispatches of coconut oil in packs up to 200 ml. Marico Bangladesh Limited also made a provision for impairment of assets pertaining to its soap brands to the extent of Rs 4.5 crore. The PAT during Q3FY10 before these items is 42% higher than in Q3FY09.

This is stated to be the 37th consecutive Quarter of growth in turnover and 41st consecutive Quarter of growth in profits for the group.

Marico's Products and Services in Hair care, Skin Care and Healthy Foods generated a Turnover of about Rs. 23.9 billion (about USD 478 Million) during 2008-09.