Marico Limited — Management Reports 2024

Apr 5, 2024

April 5, 2024

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The Secretary, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Limited, 1[st] Floor, Phiroze Jeejeebhoy Tower, Exchange Plaza, C-1 Block G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400001 Mumbai – 400051 Scrip Code: 531642 Scrip Symbol: MARICO

Sub.: Quarterly Update – Q4 FY2023-24

Dear Sir/Madam,

Please find enclosed an update on the operating performance and demand trends witnessed during the quarter ended March 31, 2024. The same will also be made available on the website of the Company shortly.

This will be followed by a detailed Information Update once the Board of Directors of the Company approves the Audited consolidated and standalone financial results for the quarter and financial year ended March 31, 2024.

Thank you.

Yours faithfully,

For Marico Limited

VINAY Digitally signed by VINAY M A M A Date: 2024.04.05 12:22:08 +05'30' Vinay M A Company Secretary & Compliance Officer

Encl.: As above

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Marico Information classification: Official

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Quarterly Update: Q4 FY24

This update seeks to provide an overall summary of the operating performance and demand trends witnessed during the quarter ended 31[st] March, 2024. A detailed Information Update will follow this once the Board approves the financial results for Q4 FY24.

During the quarter, FMCG demand sentiment stayed consistent vis-à-vis the preceding quarters with trends in urban and rural consumption largely converging.

In Q4, the domestic business posted a slight uptick in volume growth on a sequential basis owing to steadying trends in majority of the portfolios. Parachute Coconut Oil registered low single-digit volume growth as we witnessed a continuing revival in loose to branded conversions amidst firming up of copra prices, which was along expected lines. Saffola Oils delivered mid-single-digit volume growth as trade-led headwinds subsided with input and consumer pricing exhibiting stability. Value Added Hair Oils had an optically weak quarter, declining on a high base amidst persistent sluggishness in the bottom of the pyramid segment. Foods continued its steady run to close the year at ~ 4x of its scale in FY20 and Digital-first brands also sustained its strong growth trajectory, thereby meeting our stated portfolio diversification objective for the year.

Amidst the backdrop of improving macro-indicators, we expect a gradual uptick in the growth of our core categories through the ongoing initiatives to enhance the profitability of our General Trade (GT) channel partners and focused investments towards a transformative expansion in our direct reach footprint across urban and rural outlets over the next couple of years. We will continue our focus on driving differential growth in our urban-centric and premium portfolios through the organised retail and E-Commerce channels. We will continue to aggressively diversify the portfolio through the accelerated scale up of Foods and Digital-first brands and improve profitability parameters in line with our medium-term strategic priorities.

The International business reverted to clocking double-digit constant currency growth , led by Bangladesh bouncing back from transient headwinds and rest of the markets maintaining their positive momentum.

Consolidated revenue grew in low single digits, moving back into positive territory after 3 quarters, due to incremental anniversarizaton of pricing cuts in key domestic portfolios. We expect consolidated revenue growth to trend upwards, with domestic revenue growth outpacing volume growth in the quarters ahead.

Among key inputs, copra prices inched up in line with forecasts, while edible oil and crude oil derivatives remained stable. In this context, we expect strong gross margin expansion on a year-on-year basis. We also maintained investments behind brand building in line with our strategic intent to continually strengthen the long-term equity of both the core and new franchises. Consequently, we expect low double-digit operating profit growth on the back of a healthy expansion in operating margin, thereby staying on track to deliver on the margin guidance for the full year.

The Company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and scale up of new engines of growth.

Marico Information classification: Official

About Marico:

Marico (BSE: 531642, NSE: “MARICO”) is one of India’s leading consumer products companies in the global beauty and wellness space. During FY 2022-23, Marico recorded a turnover of INR 97.6 billion (USD 1.2 billion) through its products sold in India and chosen markets in Asia and Africa.

Marico touches the lives of 1 out of every 3 Indians, through its portfolio of brands such as Parachute, Saffola, Saffola FITTIFY, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Pure Sense, Coco Soul, Revive, Set Wet, Livon, Beardo, Just Herbs, True Elements and Plix. The international consumer products portfolio contributes to about 25% of the Group’s revenue, with brands like Parachute, Parachute Advansed, HairCode, Fiancée, Purité de Prôvence, Ôliv, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, Thuan Phat and Isoplus.

Marico Limited

Reg Office: 7[th] floor, Grande Palladium, 175, CST Road, Kalina, Santacruz (East), Mumbai - 400 098 Tel: (91-22) 6648 0480 Fax: (91-22) 2650 0159 Website: www.marico.com E-mail: investor@marico.com CIN: L15140MH1988PLC049208

Websites:

www.marico.com, www.maricoinnovationfoundation.org, www.parachuteadvansed.com, www.niharnaturals.com, www.saffola.in, www.fittify.in, www.saffolalife.com, www.setwet.com, www.livonilovemysalon.com, www.beardo.in, www.cocosoul.com, www.puresense.co.in, www.true-elements.com, www.justherbs.in, www.plixlife.com, www.parachutekalpavriksha.org

Marico Information classification: Official