Marico Q4 net profit down 50.6% to Rs 199 cr due to COVID-19 related disruptions; net sales drop 7%

New Delhi: FMCG firm Marico Ltd on Monday reported a 50.62 percent decline in consolidated net profit at Rs 199 crore for the fourth quarter ended March 2020 due to COVID-19 related disruptions. The company had posted a net profit of Rs 403 crore in January-March quarter a year ago, Marico said in a BSE filing.

#4QWithCNBCTV18 | Marico's domestic volume declines at 3% Vs CNBC-TV18 poll of 2-3% decline.

Here's how the earnings compare with our poll. pic.twitter.com/CzE9NM9slq

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Its net sales dropped 7.02 percent to Rs 1,496 crore during the quarter under review as compared with Rs 1,609 crore in the corresponding quarter of the previous year. “The company witnessed some encouraging signs in demand in its core portfolios until early March, which sharply diminished amidst COVID-19 outbreak as economic activity progressively slowed and adherence to social distancing norms became an imperative,” Marico said in a post-earning statement. The company’s total expenses decreased 7.39 percent to Rs 1,265 crore as against Rs 1,366 crore a year ago. During the quarter under review, domestic sales fell 7.58 percent to Rs 1,146 crore as against Rs 1,240 crore in the corresponding period of previous fiscal. “The domestic business delivered a turnover of Rs 1,146 crore ($158 million), down 8 percent on a year-on-year basis, impacted by the disruption in supply chain operations due to lockdowns enforced in the month of March to contain the outbreak of COVID-19,” the company said. “The business would have delivered flattish revenue growth in the quarter, had these disruptions not occurred,” it added. [caption id=“attachment_6013191” align=“alignleft” width=“380”] Representational image. Reuters[/caption] Revenue from the international business was at Rs 350 crore during January-March, down 5.14 percent from Rs 369 crore a year earlier. “Marico’s international business declined by 6 percent in Q4FY20 in constant currency terms, due to consumption slowdown and COVID-19 led restrictions affecting growth in the overseas markets,” it said. Click here to follow LIVE news and updates on stock markets For the fiscal year 2019-20, Marico’s net profit was down 7.78 percent to Rs 1,043 crore as compared with Rs 1,131 crore in the previous year. Its sales during 2019-20 stood at Rs 7,315 crore, marginally lower than Rs 7,334 crore in 2018-19. Commenting on the results, Marico MD & CEO Saugata Gupta said, “At this time, we are focusing on the movement of food and grocery items of daily use to our consumers, subject to all safety norms. “While persistently soft consumption trends have led to muted volume growth in FY20, we have continued to gain market share in our core franchises on the back of our trusted leader brands,” he added. On the outlook, he said Marico will continue to invest in its core portfolio, while also “adapting to shifts in consumer behaviour that may be brought about by this unprecedented human crisis”. Shares of Marico Ltd on Monday closed 0.87 percent lower at Rs 284.40 on the BSE.