SUMMARY
- Marico’s D2C personal care brands surpassed ₹525 crore ARR in Q2, aiming for ₹600 crore by FY25.
- Beardo achieved double-digit EBITDA margins, with Just Herbs and Plix’s personal care portfolio gaining traction.
- Marico aims to double D2C brands’ ARR by FY27, aligned with growing Indian D2C market.
On Tuesday, October 29, The FMCG giant Marico announced on that in the second quarter (Q2) of the current fiscal year 2024–25 (FY25), its direct-to-consumer personal care brands surpassed the ₹525 crore annualized revenue run rate (ARR) milestone.
Additionally, the business predicted that its digital-first portfolio will end the current fiscal year with an ARR of almost ₹600 crore.
The FMCG giant stated in its quarterly report submitted to the BSE that Beardo expanded “beyond expectations” and that the men’s grooming company is expected to generate “double-digit” earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin in FY25.
The quartarly update stated, “Beardo continued to scale ahead of expectations and is on course to deliver (a) double-digit EBITDA margin this year. Just Herbs and the personal care portfolio of Plix continued to gain traction.”
The FMCG major also estimated that its D2C portfolio companies were well on track to double their ARR by FY27.
Marico’s managing director and CEO Saugata Gupta stated, “We closed the first half of the fiscal on a fairly positive note with the growth trajectory of the business heading in the right direction… Foods and digital-first brands continued to ramp up impressively and reinforce the diversification agenda.”
Among other companies, the FMCG giant has bought majority holdings in Beardo, Just Herbs, and True Elements, a startup that makes nutritious foods.
In keeping with several FMCG behemoths, like as Unilever and ITC, purchasing stock in up-and-coming D2C brands, the action was taken. In order to strengthen their bottom line and increase sales, these businesses can also take advantage of the expanding e-commerce channel thanks to this strategy.
According to Inc42, there are over 50,000 digital-first brands in India, and the domestic D2C market is expected to reach a $300 billion market opportunity by 2030.
