Marico Limited (BSE: 531642, NSE: MARICO), a leading Indian Fast-Moving Consumer Goods (FMCG) giant, has once again demonstrated its resilience and strategic agility with its stellar financial performance for the fiscal year ending March 31, 2025. The company, renowned for iconic brands like Parachute, Saffola, and Livon, announced its audited financial results during a board meeting on May 2, 2025. The results highlight robust revenue growth, increased profitability, and a progressive dividend policy, all while laying the groundwork for future expansion through acquisitions and innovation.
Financial Performance: A Year of Consistent Growth
Marico’s consolidated revenue for FY25 stood at ₹10,831 crore, marking a 12.2% increase from ₹9,653 crore in FY24. Standalone revenue followed suit, rising 8.3% to ₹7,581 crore (vs. ₹7,002 crore in FY24). This growth was driven by strong demand across its portfolio, particularly in the domestic market, which contributed 75% of total revenue.
Key Financial Highlights (Consolidated):
| Metric | FY25 (₹ crore) | FY24 (₹ crore) | Growth (%) |
|---|---|---|---|
| Revenue from Operations | 10,831 | 9,653 | +12.2% |
| Net Profit | 1,658 | 1,502 | +10.4% |
| Total Dividend/Share | ₹10.50 | ₹9.00* | +16.7% |
Segmental Breakdown:
- India Business: Revenue surged to ₹8,110 crore (FY25) from ₹7,132 crore (FY24), fueled by premiumization in categories like hair care and edible oils.
- International Business: Contributed ₹2,721 crore, up 8% YoY, with strong performances in Bangladesh, South Africa, and the Middle East.
The company’s EBITDA margin improved to 19.5% (vs. 18.9% in FY24), reflecting cost optimization and favorable input prices.
Dividend Policy: Rewarding Shareholders
Marico’s board recommended a final dividend of ₹7 per equity share, pushing the total dividend for FY25 to ₹10.50 per share (including an interim dividend of ₹3.50 declared in January 2025). This marks a 16.7% increase over FY24’s total dividend of ₹9 per share.
Key Dates for Shareholders:
- Record Date: August 1, 2025
- Payment Date: On or before September 7, 2025
This consistent dividend growth underscores Marico’s commitment to shareholder value. Over the past five years, the company has maintained a payout ratio of 60–70%, balancing reinvestment with returns to investors.
Strategic Expansions: Acquisitions and Global Footprint
Marico’s growth strategy hinges on strategic acquisitions and international diversification:
- Acquisition of Apcos Naturals (Just Herbs):
In Q3 FY25, Marico acquired the remaining 40% stake in Apcos Naturals, a premium Ayurvedic skincare brand. This aligns with its push into the high-growth naturals segment, which is growing at 15% annually in India. - Control of Satiya Nutraceuticals (Plix):
Marico increased its stake in Plix, a D2C wellness brand, to 51.38%. Plix’s digital-first approach complements Marico’s e-commerce strategy, which now contributes 8% of domestic revenue. - International Markets:
The Middle East and Africa contributed 12% of international revenue, with brands like Parachute Advanced and HairCode gaining traction. Marico also entered Vietnam in FY25, targeting Southeast Asia’s $50 billion FMCG market.
Sustainability and Digital Transformation
Marico’s Green Initiative aims to reduce its carbon footprint by 30% by 2030. The company has transitioned 85% of its shareholder communications to digital platforms, saving 12 tonnes of paper annually.
On the digital front, Marico’s direct-to-consumer (D2C) brands like Beardo and Just Herbs are leveraging AI-driven analytics to personalize customer experiences. E-commerce now accounts for ₹1,200 crore in annual sales, growing at 25% YoY.
Challenges and Risks
Despite its strengths, Marico faces headwinds:
- Commodity Price Volatility: Rising coconut oil prices could squeeze margins in the hair care segment.
- Regulatory Hurdles: Stricter labeling laws in Europe and Africa may increase compliance costs.
- Competition: Startups like Mamaearth and global players like Unilever are intensifying competition in naturals and premium categories.
Future Outlook: Innovation and Market Penetration
Marico aims to achieve 15% revenue CAGR over the next five years through:
- Premiumization: Launching high-margin products like Saffola Oats and Parachute Naturals.
- Rural Expansion: Increasing distribution reach from 75,000 to 100,000 villages by 2027.
- Global Ambitions: Targeting $2 billion in international revenue by 2030, led by Egypt and South Africa.
Analysts project Marico’s market cap to cross ₹150,000 crore by 2026 (currently ₹110,000 crore), driven by its dual focus on organic growth and strategic acquisitions.
Conclusion
Marico’s FY25 results reflect a company in strong financial health, backed by prudent governance and bold strategic moves. With a loyal consumer base, a diversified portfolio, and a clear roadmap for innovation, Marico is well-positioned to capitalize on India’s FMCG boom and global opportunities. Investors and consumers alike can expect the company to continue its trajectory of sustainable growth, blending profitability with purpose.
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