Marico Limited Earnings Conference Call Summary (August 5, 2024)
Earnings Call Overview
• Date of Call: August 5, 2024
• Transcript Availability: On company website, shared with BSE and NSE
• Key Participants: Saugata Gupta (MD & CEO), Pawan Agrawal (CFO)
• Q&A Session: Exclusive to institutional investors and analysts
Financial Performance Highlights
• Demand Trends: Gradual improvements, especially in rural areas
• Volume Growth: Sequential increase in domestic volume; over 90% market share retention
• Revenue Drivers: Price hikes in coconut oil; expectations for further growth as prices stabilize
Product Segment Performance
• Coconut Oil: Strong volume growth for Parachute
• Edible Oils: Saffola stable; value-added hair oils facing challenges
• Foods Segment: Significant growth, especially in oats; ongoing innovation
• Personal Care: Premium brands showing healthy growth
International Business Insights
• Growth: Double-digit growth in international markets, particularly Bangladesh
• Challenges: Myanmar facing geopolitical issues
• Strategic Focus: Diversification and reducing commodity-linked revenue volatility
Strategic Initiatives
• Project SETU: Enhancing direct distribution with promising results
• Growth Targets: Aiming for 20-25% CAGR in foods and premium personal care by FY '27
• Sustainability: Progress in Sustainability 2.0 framework for long-term growth
Q&A Session Highlights
• Foods Business Growth: Focus on specific products like oats and honey; strong organic growth
• International Diversification: Strategy in Bangladesh to mitigate risks
• Value-Added Hair Oils: Challenges due to competitive pricing; optimism for future growth
• Future Innovations: Plans to expand into breakfast and snacking categories
Market Dynamics and Strategy
• Market Share: Recent share loss attributed to consumer downgrading and competitive pricing
• Distribution Strategy: Enhancing direct reach from 1 million to 1.5 million outlets
• Pricing Strategy: Maintaining flat pricing for Saffola; expected mid-single-digit volume growth
Outlook and Expectations
• Profitability: Retaining most profitability in new partnerships
• Margin Profiles: Potential for improvement in Middle East and South Africa
• FY25 Outlook: Positive domestic demand trends; aiming for double-digit revenue growth while maintaining margins

Marico Limited Earnings Conference Call Summary (May 6, 2024)
Submission Details
• Transcript submitted on May 13, 2024, for earnings call regarding FY24 results.
• Directed to BSE and NSE, compliant with SEBI regulations.
• Available on the company's website.
Key Highlights from the Call
• Management Participation: Led by MD & CEO Saugata Gupta and CFO Pawan Agrawal.
• Audience: Questions from institutional investors and analysts only.
Market Performance
• FMCG Sector: Resilient despite challenges like volatile input prices and slow rural demand.
• Volume Growth: Stabilization noted; urban growth moderating, rural growth improving.
• Market Share: 75% of the business maintaining or gaining market share.
Category Performance
• Parachute: Steady recovery.
• Saffola Oils: Stability observed.
• Value-Added Oils: Facing challenges due to sluggish demand.
• Foods Segment: Double-digit growth; focus on scaling and profitability.
• Premium Personal Care: Strong growth in brands like Beardo and Just Herbs.
Strategic Goals
• Portfolio Diversification: Targeting 25% share from Foods and Premium Personal Care by FY27.
• Project SETU:
• Three-year plan to expand direct reach from 1 million to 1.5 million outlets.
• Investment of INR 80-100 crores to enhance distribution and market share.
International Segment
• Growth: Double-digit constant currency growth, especially in Bangladesh.
• Revenue Dependence: Expected reduction from over 50% in FY22 to about 40% by FY27.
Financial Outlook
• FY25 Expectations: Positive revenue growth driven by market share gains and premium segment growth.
• Operating Margin: Achieved highest in FY24; further improvements anticipated.
Q&A Session Insights
• Growth Strategies: Focus on direct distribution to improve sales efficiency.
• Bangladesh Performance: Return to decent sales growth despite economic challenges.
• Core Categories: Emphasis on pricing adjustments and volume growth for recovery.
• Digital Brands: Ambitious growth targets; aim to double turnover in three years.
Margin Improvement
• Pawan Agrawal's Insights: Structural levers for margin enhancement despite inflation.
• Food Segment: Significant gross margin expansion noted.
Distribution Expansion
• Direct Distribution: Critical for growth and quality, especially in rural areas.
• Investment Clarification: Project Setu investment spread over three years.
Conclusion
• Positive Outlook for FY25: Anticipating double-digit revenue and healthy earnings growth.

Overview
• Date of Call: January 29, 2024
• Submission Date: February 5, 2024
• Participants: Senior management including CEO Saugata Gupta and CFO Pawan Agrawal
• Compliance: Transcript shared in accordance with SEBI regulations
Financial Performance
• Quarter Results: Unaudited financial results for the quarter and nine months ending December 31, 2023
• Volume Growth: Low single-digit FMCG volume growth; organic domestic volume growth at 2%
• Brand Performance:
• Parachute: Gained market share
• Saffola: Expected rebound
• New Businesses: Strong growth in Foods and Premium Personal Care segments
Market Insights
• Rural vs. Urban: Divergence in performance; optimism for gradual consumption recovery
• International Markets: Mixed performance; strong results in MENA and South Africa
• General Trade Channel: Emphasis on revitalization for sustainable growth
Strategic Focus
• Packaged Foods: Growth potential with True Elements acquisition
• Competitive Landscape: Welcoming new entrants in masala oats category
• Distribution Strategies: Phased approach to enhance efficiency in rural and urban markets
Supply Chain and Margins
• Inventory Management: Focus on improving distributor ROI and reducing inventory costs
• EBITDA Margin Outlook: Expectation of low teen profit growth driven by revenue increases
Pricing and Growth Projections
• Saffola and Parachute Pricing: Slight revenue uptick expected; favorable pricing scenario anticipated
• Foods Business Growth: Expected rebound to over 20% growth
Segment Challenges
• PPC Segment: Stagnant growth due to rural market stress
• VAHO Portfolio: Weak demand attributed to inflation and competition
• Edible Oils: Performance tied to market stability; focus on higher-margin food products
Capital Allocation and M&A
• M&A Strategy: Organic growth prioritized; digital acquisitions successful
• Ad Spending: Reduction due to market volatility; anticipated rebound in upcoming quarters
Future Outlook
• Growth Expectations: Mid to high single-digit growth in Q4; aspirations for 20%+ growth in Foods by FY27
• Margin Improvements: Expectation of double-digit profit growth through various strategies
Conclusion
• Competitive Performance: Despite challenges, expectations for improved growth trends and record high operating margins in the future.

Marico Limited Earnings Conference Call Summary (October 30, 2023)
Overview
• Date of Call: October 30, 2023
• Financial Results: Unaudited results for the quarter and half-year ending September 30, 2023
• Participants: Senior management including CEO Saugata Gupta and CFO Pawan Agrawal
• Availability: Transcript shared with BSE, NSE, and available on the company website
Operating Environment
• Demand Trends: Consistent with previous quarter; positive in July, decline in August/September due to poor rainfall and rising food prices
• Recovery: Optimism for improved consumption during the festive season
Performance Highlights
• India Business: Low single-digit growth; challenges in general trade, strong growth in modern trade and e-commerce
• Brand Performance:
• Parachute: Muted quarter
• Saffola Edible Oils: Steady growth
• Foods Segment: On track with double-digit growth in oats and new product launches
• International Business: Double-digit growth despite macroeconomic challenges
Strategic Focus
• Sustainable Growth: Increased advertising and promotion spending planned
• ESG Commitment: Launch of a dedicated microsite for sustainability information
Q&A Session Insights
• VAHO Strategy: Under-indexed in alternate channels; premiumization journey initiated
• Coconut Oil Market: Slowdown in conversions from unbranded to branded; improvements in Parachute oil sales
• Saffola Oats Success: Key insights for future launches; potential growth in plant protein category
• Scalability of Strategies: Applicable across categories; focus on achieving profitability thresholds
• Diversification Agenda: Premium personal care expected to contribute significantly to revenue
Financial Outlook
• Margin Expectations: Target range of 19-20% for FY24; potential volatility due to deflation
• Foods Go-to-Market Strategy: Focus on urban specialty food outlets; need for better performance in chemist and cosmetics sectors
Acquisitions and Future Growth
• Recent Acquisitions: True Elements on track; needs adaptation for Indian market
• Brand Performance: Optimism for Beardo and Just Herbs; Coco Soul and Pure Sense require more time
• Commitment to Growth: Emphasis on sustainable and profitable growth amid challenging market conditions

AGM Overview
• Date and Submission: AGM held on August 11, 2023; transcript submitted to BSE and NSE on August 28, 2023.
• Format: Conducted via video conferencing for seamless attendance and voting.
• Chairman's Address:
• Mr. Harsh Mariwala welcomed attendees and introduced Board members.
• Emphasized the company's resilient performance and the theme of the Integrated Annual Report: "Transformative, Innovative, and Purpose-led."
• No adverse remarks in auditors' reports.
Performance Highlights
• FY23 Financials:
• 3% year-on-year growth in consolidated revenue (₹9,764 crores).
• 8% increase in operating profit (₹1,810 crores) with an operating margin of 18.5%.
• 1% volume growth in India despite retail inflation challenges.
• Significant growth in Modern Trade and E-commerce channels (30% contribution to India business).
Strategic Focus
• Growth Segments: Expansion in Foods and Premium Personal Care.
• International Performance: 13% growth in constant currency.
• Future Strategy: Focus on "4Ds" (Diversification, Distribution, Digital, Diversity) and sustainable practices.
• Investments: Strategic investments in wellness brands like True Elements and Plix.
Shareholder Engagement
• Dividend: Payout of ₹4.50 per share for FY23.
• Q&A Session: Shareholders expressed gratitude and provided suggestions for improvements.
• Requests for physical meetings, product availability, and CSR guidelines.
• Emphasis on gender diversity and better communication with shareholders.
Management Responses
• Mr. Saugata Gupta's Insights:
• Addressed raw material price impacts and digital transformation.
• Commitment to sustainability and 100% recyclable packaging by 2025.
• Focus on adapting to market changes and consumer needs.
Capital Expenditure and Future Outlook
• Projected Capex: ₹150-200 crore for capacity expansion and maintenance.
• Profit Increase: 50% profit increase in the June quarter due to revenue growth and improved margins.
• Shareholder Participation: Approximately 62 shareholders attended out of 3.33 lakh total shareholders.
Conclusion
• Meeting Closure: Mr. Harsh Mariwala concluded the meeting, thanking attendees and expressing hope for future engagement.

Submission Details
• Date of submission: August 4, 2023
• Earnings call date: July 28, 2023
• Focus: Unaudited financial results for the quarter ending June 30, 2023
• Compliance: Submitted to BSE and NSE as per SEBI regulations
• Availability: Transcript on Marico's website
Management Overview
• Participants: Saugata Gupta (MD & CEO), Pawan Agrawal (CFO)
• Format: Listen-only with Q&A for institutional investors and analysts
Operating Environment
• FMCG Sector: Positive volume growth driven by urban markets; rural growth subdued
• Domestic Volume Growth: 3%, lower than expected due to inventory adjustments and pricing cuts
• Future Outlook: Anticipated improvement in volume growth supported by demand and market share gains
Financial Performance
• New Categories: Foods and Premium Personal Care contributed ~20% to domestic revenues
• International Business: Expected double-digit growth for FY24
• Profit Margins: Improved due to lower input costs; target to maintain operating margins above 20% in FY24
Growth Strategy
• Plix Brand: Focus on e-commerce growth before omnichannel expansion; current run rate of Rs. 150 crore
• Digital Brand Acquisitions: Criteria include differentiation, strong unit economics, and founder commitment
• Integration of Acquired Brands: Balance unique culture with essential processes; focus on portfolio management and compliance
Segment Insights
• Foods and Premium Personal Care: Higher margins but require significant A&P investment; aim to align margins with legacy portfolio in 12-18 months
• VAHO Segment: Flat growth due to pipeline issues and competition; optimistic about recovery in H2
Inventory Management
• Transitioning to a pull-based system; focus on distributor profitability and demand generation through increased marketing
Saffola Brand Strategy
• Aiming to reduce exposure to edible oil volatility; focus on health benefits and expanding food sector presence
Future Outlook
• Gross Margin Expectations: Projected increase of 300-400 basis points for the full year
• International Markets: Strong performance in Bangladesh and Vietnam; potential for margin growth in MENA
• Overall Confidence: Positive indicators for domestic volume growth and commitment to maintaining healthy margins throughout FY24

Marico Limited Earnings Conference Call Summary (May 5, 2023)
Compliance and Overview
• Marico Limited submitted a transcript of its earnings call to BSE and NSE on May 11, 2023.
• The call discussed financial results for the quarter and year ending March 31, 2023.
• Featured senior management, including CEO Saugata Gupta and CFO Pawan Agrawal.
Performance Highlights
• Challenges: Geopolitical tensions and inflation initially dampened consumption in India.
• Recovery: Gradual recovery in FMCG consumption over the past 6-9 months; volume growth returned after five quarters of decline.
• Growth Metrics:
• 6% domestic volume growth over four years.
• 11% growth in international markets.
• Improved profitability due to lower input costs and favorable product mix.
Key Product Categories
• Strong Growth: Parachute coconut oil and value-added hair oils.
• Challenges: Saffola Edible Oils faced difficulties due to a high-volume base from the previous year.
• Foods Segment: Significant growth driven by the oats portfolio; Premium Personal Care category rebounded.
Strategic Focus and Future Outlook
• Diversification: Increased revenue share from 11% in FY22 to 15% in FY23, targeting 20% in FY24.
• Mergers and Acquisitions: Ongoing efforts to enhance strategic positioning.
• Profitability: Anticipated gross margin increase of 200-250 basis points in FY24; focus on advertising and cost savings.
ESG Initiatives
• Commitment to achieving net zero emissions in domestic operations by 2030 and globally by 2040.
Q&A Session Insights
• Margin Expansion: Expected gross margin increase; focus on reinvesting in new products.
• Sales Growth: Optimism for better volume growth in Parachute and Saffola.
• General Trade Channel: Continued importance despite challenges from modern trade and e-commerce.
Segment Dynamics
• Foods vs. HPC: Foods benefiting from urban focus and health trends; HPC facing pressures from input costs.
• VAHO Segment: Consistent value share gains; targeted double-digit growth over the next three years.
Market Position and Competition
• Coconut Oil: Marico maintains market share and aims for long-term volume growth.
• Employee Costs: Increase attributed to acquisitions and one-off reversals; expected normalization in growth rate.
Conclusion
• Marico expresses optimism for FY24, citing diversification efforts and a focus on sustainable growth despite challenges faced in FY23.

Overview
• Date of Call: February 3, 2023
• Submission Date: February 10, 2023
• Compliance: Directed to BSE and NSE per SEBI regulations
• Participants: Senior management including MD Saugata Gupta and CFO Pawan Agrawal
• Focus: Unaudited financial results for the quarter and nine months ending December 31, 2022
Operating Environment
• Gradual improvement in FMCG consumption trends due to easing inflation
• December quarter saw slight volume decline; food categories grew while HPC faced challenges
• Marico reported:
• 4% domestic volume growth
• 8% growth in international business
• Strong three-year CAGR for both segments
Growth Prospects
• Confidence in continued growth in volume and earnings
• Stabilizing raw material and consumer prices expected to aid market share gains
• Anticipated easing of macroeconomic challenges and inflation
Segment Performance
• Coconut Oil and Saffola Oil: Pricing stabilization; competitive actions to mitigate commoditization in VAHO
• Foods and Digital-First initiatives progressing well
• International business projected to maintain double-digit growth
Financial Outlook
• Gross margins expected to remain steady with potential for improvement
• EBITDA margins anticipated to stay within 18-19% for FY23, above 19% in FY24
• Commitment to sustainable growth and ESG initiatives, aiming for net-zero emissions by 2030 (domestic) and 2040 (global)
Q&A Highlights
• Concerns about VAHO growth addressed; decreasing input costs may reverse trends
• Focus on premium segments and potential new opportunities in onion and mustard oil
• Clarification on the shift towards food products while still pursuing personal care opportunities
• Emphasis on sustainable long-term growth over short-term gains
Strategic Insights
• Plans to enhance profitability in digital and Foods businesses
• No immediate price declines for PCNO; potential adjustments next year
• Recovery potential in premium personal care segment with robust demand generation
• Currency depreciation impacts on international margins discussed
Future Goals
• FY24 target for Foods business set at Rs. 850-1,000 crores
• Ongoing prototyping for Beardo brand's physical store expansion
• Signs of rural recovery noted, with gradual improvement expected
Conclusion
• Positive trends for rural income and consumption drivers highlighted
• Encouraging domestic volume growth and earnings anticipated
• Commitment to optimal investment and execution for future growth emphasized