FMCG deals: growth ≠ profit

Storyboard18’s analysis cites instances of acquired digital‑first FMCG brands showing up to 10.4‑fold revenue increases post‑deal, with Tracxn flagged as the data source for that multiple. (storyboard18.com) Marico paid about Rs 369.01 crore for a 58% stake in D2C nutrition brand Plix in July 2023, according to contemporaneous filings and press reports. (indiainfoline.com) Post‑acquisition reporting shows Plix’s revenue jumped roughly 938% and net profit margins moved from –26.87% in FY22 to +1.09% in FY25 per Storyboard18 citing Tracxn, illustrating top‑line scale with delayed margin recovery. (storyboard18.com) Other Marico targets delivered mixed outcomes: True Elements’ revenue rose to Rs 165 crore (Rs 1.65 billion) while EBITDA margins swung to –13.95% in 2025 from +1.07% in 2021, and Just Herbs grew revenues ~178% with margins still under pressure, per the same Storyboard18 review. (storyboard18.com) Beardo is a counterexample where scale and margin aligned—revenue more than tripled since full acquisition in 2020 and EBITDA margins expanded to 9.45% in 2025 from 1.29% in 2019, according to Marico’s disclosures cited by Storyboard18. (storyboard18.com) Crisil Ratings’ sector review found roughly two‑thirds of FMCG acquisitions in the past five fiscals targeted D2C players, while fewer than 15% of those targets had crossed Rs 250 crore in revenue pre‑acquisition and only about one‑third were profitable beforehand. (outlookbusiness.com) Advisory research shows post‑merger integration costs are driven by the degree of operating‑model change rather than deal size, and structured PMI approaches (BCG, EY) can materially improve captured deal value—BCG cites frameworks that have helped clients recover roughly 9% more value from M&A when applied rigorously. (ey.com)