Marico's profit soars 105% YoY, despite reduced ad spending in Q2 FY25

FMCG major Marico has reduced its advertisement and sales spending in the second quarter year-on-year. The retail brand's standalone ad spending stood at Rs 117 crore in Q2 FY25 compared to Rs 139 crore in the corresponding quarter last fiscal year.

The company's standalone profit soared to Rs 529 crore--a 105 percent increase YoY. On a quarterly basis, the company's profit saw a rise of 70 percent.

Marico's standalone revenue from operations stood at Rs 1,860 crore from Rs 1,791 crore while the total income rose to Rs 2,162 crore as against Rs 1,826 crore.

According to the company's quarterly earnings, Parachute Coconut Oil contributes 33 percent to the company's domestic revenue, followed by Value Added Hair Oils at 20 percent; and Saffola Edible Oils at 18 percent.

"The domestic business maintained its improving volume growth trajectory on the back of healthy trends across most of the core and new franchises," Marico said.

The company added that it witnessed stable demand trends in the country with rural growing at 2x the pace of urban on a YoY basis.

Marico said that the international business exhibited persistent strength across all key markets, underpinned by strong fundamentals and enduring growth potential.

According to the company, "The encouraging demand trends in the first half of the year hold promise of an improving trajectory in the second half. The above-normal monsoon season, government’s budgetary allocations towards boosting the rural economy, and upcoming festive season also bode well".