MAM

Marico Q4-2014 Ad spends down 9 per cent; 6 per cent down in FY-2014

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2014/05/02/marico.jpg?itok=63tttBU7

BENGALURU:  Indian consumer products in beauty and wellness space company Marico spent (-9.08) per cent less at Rs 121.91 crore (11.38 per cent of Operating Income or Op Inc) in Q4-2014 towards advertisement and sales promotion (Ad & SP Exp) as compared to the Rs 134.08 crore (11.17 per cent of Op Inc)  in Q3-2014. Further, Marico’s Ad & SP Exp in Q4-2014 was also lower by (-3.0) per cent as compared to the Rs 125.68 crore (12.59 per cent of Op Inc) in the year ago quarter Q4-2013.

During FY-2014, the company’s Ad & SP Exp was down (-6.15) per cent at Rs 561.17 crore (11.97 per cent of Op Inc) as compared to the Rs 597.94 crore (13.01 per cent of Op Inc) in FY-2013. The company’s average Ad & Sp Exp as percentage of Op Inc over nine quarters starting Q4-2012 until Q4-2014 is 12.48 per cent, and the current year’s Ad & SP Exp throughout the year as well in Q4-2014 are lower than that average.

Notes: 100,00,000=100 Lakhs = 1 crore

Marico’s Op Inc for Q4-2014 was (-10.71) per cent lower at Rs 1072.06 crore as compared to the Rs 1200.69 crore in Q3-2014. Y-o-y, Op Inc for Q4-2014 was 7.36 per cent more than the Rs 998.59 crore in Q4-2014.

Please refer to Fig 1 and Fig 1A below:

In line with the consumer goods industry trends, the company’s PAT in Q4-2014 has dropped by (-34.42) per cent to Rs 88.77 crore from Rs 135.37 crore in Q3-2014. However, y-o-y, Marico’s PAT in Q4-2014 was 5.85 per cent more than the Rs 83.86 crore in Q4-2013.

Across the nine quarters in question, PAT trend is upwards, both in terms of absolute rupee value and as percentage of Op Inc.  PAT as per cent of Op Rev also trends upwards between three financial years staring FY-2012 to FY-2014. Please refer to Fig 2 and Fig 2A below.

Marico says that its business has shown steady recovery in volume growths with sustained improvements in market shares. In India, due to the weak demand environment, the growth rates of various segments have come down. This has impacted the company’s growth rates as well.

The company entered the Hair Colour category by introducing Livon Conditioning Cream Colour. The initial retailer and consumer feedback across the board has been positive.

To commemorate 25 years since incorporation, the company has declared a one-time Silver Jubilee Third Interim Dividend of 175 per cent (Rs 1.75 per share) on the equity share capital of Rs 64.48 crore at the meeting of its Board of Directors held in March 2014.

Marico Managing Director & CEO Saugata Gupta said, “Despite the challenges in the environment during FY1-2014, it has been a satisfying year with Marico’s brands gaining shares across most of the portfolio. In Q4 we have been able to get back to healthy levels of growth in key categories and expect to see a gradual increase in momentum in the coming quarters.

Here is what the company has to say about its various products and brands:

Parachute coconut oil in rigid packs (the focus part of the Parachute portfolio) recorded a volume growth of about 10 per cent during the quarter. Q4FY14 has shown a recovery in volume growth from an abnormally low growth in Q3FY14. During the 12 month period ended March 2014, Parachute along with Nihar maintained its market share at 56 per cent.

The Saffola refined edible oils franchise grew by about 11 per cent in volume terms during Q4FY14 as compared to Q4FY13, reporting a continuous improvement in performance. The brand has been able to reverse a softer performance in 2012-13 and accelerate in the second half of the year based on its effective equity building communication. The brand maintained its leadership position in the super premium refined edible oils segment with a market share of about 55 per cent during the 12 months ended March 2014.

In the breakfast cereals, Saffola Oats has increased its market share by 24 bps to 14 per cent and has retained its no two position. Saffola Oats crossed Rs 50 crore ($ 8 million) landmark in top line during the year under review. The company expects to continue the robust growth in Oats.

Marico’s hair oil brands (Parachute Advansed, Nihar Naturals and Hair & Care) grew by 5 per cent in volume terms during Q4FY14 over Q4-2013. Nihar Shanti Amla continues to gain market share and achieved a volume market share of about 30 per cent for the 12 months ended March 2014 in the Amla hair oils category (MAT FY13: 25 per cent). Niha Shanti Amla is now a Rs 250 crore ($ 40 million) brand.

Due to the challenging environment, the body lotion category growth rate has fallen to single digit. Parachure Advansed Body Lotion has maintained its no three position with a market share of six per cent. The company expects the brand to be back on track next year.

The Company says that it launched India’s first unique multi-dimensional ‘spray-on’ body lotion during the quarter. The variant has been launched in a 100ml SKU with an introductory price ofRs. 99.

The acquired portfolio of youth brands grew by 16 per cent during the year over FY13. Due to inflationary trend and restricted spends on discretionary products, the category growth rates of Post Wash Serums, Hair Gels/Creams and Deodorants have come off considerably. This coupled with a high base in Q4FY13 (due to re-launch of Zatak) has led to a flat performance of the portfolio in Q4-2014.

Set Wet and Zatak increased its market share marginally in the deodorants segment to five per cent for the 12 months ended March 2014, in this crowded category. In February, Set Wet launched a new variant Set Wet Infinity, a non-aerosol perfume spray with ‘no-gas’ formulation. The launch will be supported by an extensive media campaign during IPL7. Set Wet (Deodorants and Gels) is now a Rs 100 crore ($ 17 million) brand with a strong equity and growing consumer franchise.

This youth portfolio will also witness a much higher interaction with overseas portfolio thereby leveraging scale and innovation synergies.

Sales in Modern Trade (nine per cent of the domestic turnover) continued its good run and grew by 16 per cent in

Q4-2014 led by Saffola and coconut oil.

Marico’s rural sales continue to clock a faster pace of growth than its urban sales. The continued focus on distribution expansion in rural markets has pushed FY-2014 rural sales to more than 30 per cent of total Indian FMCG sales.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/23/SVG-Columbus.jpg?itok=MZvkXIIK
SVG Columbus wins Sportzlive's digital duties

SVG Columbus, the data-driven marketing agency from Dentsu Aegis Network, has been appointed as the digital agency for SportzLive's #CueSlam, India’s only Snooker & 9-Ball (Pool) league. The account was won following a direct pitch and will be handled out of the agency’s Delhi office.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/23/HUNGER.jpg?itok=JwDY_Htn
LG launches #HungerFreeIndia campaign

LG Electronics India has launched the initiative #HungerFreeIndia, dedicated to help eradicate Food Wastage in India. This campaign is inviting the whole nation to come forward and take pledge to avoid food wastage and thus, help eradicate hunger.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/23/India%20v%20Australia.jpg?itok=ctUxAYXm
Star Sports releases TVC of Kangaroo facing off a Tiger, from 17 Sept

MUMBAI: Star Sports has kicked off its campaign for Paytm India v Australia ODI series with a TVC to depict the two formidable opponents as a Kangaroo facing off a Tiger. The five-match ODI series which will be followed by three T20Is starts on 17 September, 2017. It is claimed that the TVC has...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/23/Untitled-1.jpg?itok=7LKG6iGA
Be smart in phone buys, say kids in Flipkart TVCs

MUMBAI: Smartphones are a basic necessity today and consumers spend a great deal of time researching on what’s the best model suitable for them. Most consumers often end up questioning their decision when it comes to a smartphone purchase, as they can never be sure if there is a better deal on the...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/22/pensol.jpg?itok=JPja7hDv
Pensol campaign shows what dreamers could do

Pensol as, created by SoCheers Infotech, aims to create awareness about the quality lubricant products Pensol have been offering over 50 years.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/22/Barin-Mukherjee.jpg?itok=-rhJhdWo
DigitalF5 bags Mainland China & Oh! Calcutta mandate

DgitalF5, a digital marketing services agency, has acquired the search, content, social media, planning and buying digital media mandate for Speciality Restaurants brands -- Mainland China and Oh! Calcutta, owned by Anjan Chatterjee.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/22/mufti.jpg?itok=u7OahCZC
Mufti's digital campaign triggers sale

Mufti’s pre-GST sale kicked it up a notch with its digital campaign #MuftiSpinTheDeal, leveraging on social media reach and converting its online audience into actual customers through store visits.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/22/Kyoorius.jpg?itok=8gadHzXR
Kyoorius unveils its jury, Karen Welman to be foreman

The jury for the fifth edition of the Kyoorius Design has been unveiled. The jury sessions will take place on 15 and 16 September, 2017 at the Ecole Intuit Lab in Mumbai. The Kyoorius Design Awards is the foremost awards for design and visual communication in India. All design work commercially...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/21/frzad.jpg?itok=nhuWmuH5
MTV & HP provide ‘Fame-istan’ to budding filmmakers

Freedom of expression is considered to be a basic necessity for human beings to live a full life. It is a reflection of a healthy and democratic nation. More often than not cinema is considered as a classic means of expression of thoughts and freedom. MTV, the voice of the youth, along with HP Inc....

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories