MAM

Pruned Ad expenses among Marico’s tightening measures bring higher PAT in Q3-2014

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/mam-images/2014/02/01/Marico.jpg?itok=Y94b5pMs

BENGALURU:  Indian consumer products and services company in the global beauty and wellness space, Marico Limited (Marfico) reported 27.87 per cent growth in PAT to Rs 135.37 crore in Q3-2014 from Rs 105.87 crore in Q2-2014 and 32.33 per cent from the Rs 102.29 crore in Q3-2013. 

The company has been tightening its operations, as seems evident from the figures reported by it for the current quarter. Changes in depreciation and amortization calculation method since FY-2013 that result in a lower figure as compared to the older method, reduction in employee benefit, pruning of advertising and sales promotion expense (Ad and sales promo), lower finance cost, lower percentage of  ‘other expense’ in relation to its revenue are some of the changes that have been reported by Marico.

 Let us look as the figures reported by Marico vis-?-vis Ad and sales promo expense during Q3-2014 

Marico spent Rs 134.08 crore towards Ad and sales promo in Q3-2014, (-15.94) per cent lower than the Rs 157.82 crore in the corresponding quarter of last year and (-0.85) per cent lower than the Rs 135.22 crore in Q2-2014. During the nine month period ended 31 December 2013, Marico spent Rs 439.27 crore on this account, which was (-6.99) per cent lower than the Rs 472.26 crore spent during the corresponding nine month period of last year. During FY 2013, Marico spent Rs 597.94 crore towards Ad and sales promo. 

In terms of percentage of operating revenue (national and international), Marico’s Ad and sales promo expense has trended downwards. The figures for Ad and sales promo expense are: 11.19 per cent of Operating revenue of Rs 1198.35 crore in Q3-2014; it was 13.56 per cent of Operating revenue of Rs 1163.99 crore in Q3-2013; it was 12.12 per cent of Operating revenue of Rs 1,115.36 crore in Q2-2014; it was 12.18 per cent of Operating revenue of Rs 3606.37 crore during the nine month period ended 31 December 2013; and 13.17 per cent of Rs 3587.09 crore during the nine month period ended 31 December 2012. For FY 2013, Marico’s Ad and sales promo expense was 13.04 per cent of Operating revenue of Rs 4,584.35 crore. 

In terms of percentage of Total expense, Marico’s Ad and sales promo expense during Q3-2014 was 13.15 per cent of Total expense of Rs 1,019.58 crore;  During Q3-2013, it was 16.33 per cent of total expense of Rs 1,022.89 crore; During Q2-2014, it was 15.44 per cent of Rs 966.69 crore; During the nine month period ended 31 December 2013, Marico’s Ad and sales promo expense was 14.28 per cent of Total expense of Rs 3,076.05 crore as compared to the 14.97 per cent of Total expense of Rs 3,154.56 crore during the corresponding nine month period of FY 2013. During FY 2013, Marico’s Ad and sales promo expense was 14.74 per cent of Total expense of Rs 4,057.02 crore. 

Marico says that its India operations FMCG business, which contributes 76 per cent to group revenue, grew nine per cent in terms of value and three per cent in terms of volume during Q3-2014, indicating a better price realisation during the quarter.  During the nine month period ended 31 December 2013, (YTD) Marico’s Indian FMCG business grew six per cent in both value and volume.  

Marico claims a premier position on key parameters in market share (on basis of 12 month moving average total or MAT) for many of its branded products. It claims a market share of 56 per cent in India for its coconut oil under the brands Parachute and Nihar. For its edible refined oil brand Saffola, the company claims a market share of 57 per cent and no. 1 position.

Marico says that its hair oil brands Parachute Advansed, Nihar, Hair & Care have a market share of 28 per cent and are ranked 1 in India. Its claims the 5th position in India with a market share of five per cent for its deodorant brands Set Wet and Zatak. 

Marico’s largest branded product with 24 per cent contribution to group revenue, Parachute Coconut oil in rigid packs showed growth of six per cent in value and two per cent in volume. YTD, this product showed a decline in value by (-one) per cent, while showing a volume growth of two per cent.  

Marico’s value added Hair Oils portfolio with brands like Parachute Advansed, Nihar, Hair & Care and having  17 per cent contribution to group revenue grew 16 per cent in value and 8 per cent in volume during Q3-2014. YTD, it grew 17 per cent in terms of value and 13 per cent in terms of volume. 

Its refined edible oil brand Saffola with 16 per cent contribution to group revenue grew seven per cent in terms of value and nine per cent in terms of volume. YTD, Saffola grew five per cent in terms of value and nine per cent in terms of volume. 

The company has raised the prices across all products in December 2013.

Marico Group CEO Saugta Gupta said, “We believe that the soft consumption environment has bottomed out and the performance of the Company will pick up steadily going forward. In order to make the Company future ready, we are investing significantly on go-to-market transformation, cost management, innovation and analytics project. The Company will start reaping the benefits of these capability building initiatives from FY15 onwards. We will also experience greater synergies in product portfolio and talent mobility across different geographies in the coming year.” 

Marico Group CFO Milind Sarwate said “Marico’s FMCG Business has managed to grow despite the challenges of the economic slowdown in India and instability in some of our overseas markets. The basics of our business are however robust. The Kaya demerger is now effective with Bombay High Court approval. We now expect shares in Marico Kaya Enterprises Limited to list in April 2014.”

Click below for:-

Information Update - Q3FY14

Media Release - Q3FY14

Statutory Advertisement - Q3FY14

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/19/amit.jpg?itok=JH0bw_nq
Dabur India appoints Amit Burman as chairman

MUMBAI: FMCG major Dabur India Ltd today announced the appointment of Amit Burman as the company's chairman in place of Anand Chand Burman. Amit Burman has been elevated to the position for five years with effective from 19 July. “Amit Burman vice chairman of the company has been appointed as...

MAM Media and Advertising People
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/19/mediacom.jpg?itok=GNpvJztP
MediaCom announces changes to Worldwide, EMEA and UK leadership teams

MUMBAI: MediaCom has promoted Nick Lawson, Josh Krichefski and Kate Rowlinson in changes to its Worldwide, EMEA and UK leadership teams. All changes will come into effect in September.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/19/nclh.jpg?itok=CQpr_Fop
Norwegian cruise line holdings ltd. appoints actimedia as its pr partner for india

MUMBAI: Norwegian Cruise Line Holdings Ltd. has appointed Actimedia PR, a leading lifestyle agency, as its PR Communications consultant for its corporate brand communication needs & its three cruise brands namely- Norwegian Cruise Line, Oceania Cruises & Regent Seven Seas Cruises. 

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/18/neha.jpg?itok=h1c2AG1i
Advertiser turnover from online blogs, forums in India increased by 7 times in H1 2019

MUMBAI: In a move which underlines how lucrative new traffic channels can be for advertisers, Admitad India has recently analysed online orders and sales data that its partner advertisers in India have received in the first half of 2019. As per the research, sales through the platform brought by...

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/18/marriot.jpg?itok=z1r3spUE
Marriott hotels ventures to nepal with the opening of kathmandu marriott hotel

MUMBAI: Kathmandu Marriott Hotel opens in the historic capital city, marking the debut of the flagship brand in Nepal. Designed to expand the mind of modern travelers, the hotel’s prime location connects next generation travelers to attractions throughout the fascinating cultural city.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/18/ram.jpg?itok=sm1rN07X
Colgate-Palmolive (India) appoints Ram Raghavan as MD

MUMBAI: Colgate-Palmolive( India) Limited has appointed Ram Raghavan as managing director during a decision was taken in a board meeting held on 18 July. The appointment will be effective 1 August. “This is to inform you that the Board of Directors of the Company, in their meeting held on July 18,...

MAM Marketing Brands
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/18/kulmit.jpg?itok=yJU-W-OF
Resulticks brings on board Kulmeet Bawa as COO and president JAPAC

MUMBAI: Real-time omnichannel marketing solutions provider Resulticks announced today that Kulmeet Bawa has joined the company as its chief operating officer and president, JAPAC. In his wide-ranging new role, Bawa will play a pivotal role in global strategy formulation and will drive Resulticks’...

MAM Media and Advertising People
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/18/nutralite.jpg?itok=j6qAeXaD
Amway India strengthens its Nutrition portfolio; Launches Nutrilite Cal Mag D Plus

MUMBAI: Amway India, the country’s largest FMCG direct selling company, announced the launch of the enhanced version of the calcium supplement - Nutrilite Cal Mag D Plus. Coming from the [ii]world’s #1 selling vitamin and dietary supplements brand- Nutrilite, the new calcium supplement provides...

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/07/18/umumba.jpg?itok=p8sISd4A
U Mumba ropes in 6 sponsors, 3 partners for Pro Kabaddi League 7

MUMBAI: U Mumba, the franchise owned by U Sports which is helmed by Ronnie Screwvala and Supratik Sen, got 6 sponsors and 3 partners on board for the upcoming Season 7 of the Pro Kabaddi League that starts on 20 July. While a few brands have been associated with U Mumba in prior seasons as well, a...

MAM Media and Advertising Sponsorship

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories