Its profit grows 9pc in 2023

Marico Bangladesh reported a net profit of Tk 3.87 billion in financial year 2023, the highest since its listing on the stock market, thanks to an increase in sales and product prices.

Its net profit grew 9.0 per cent year-on-year for the financial year that ended in March 2023, according to a disclosure published on Friday.

The India-based fast-moving consumer goods company also posted an 8.45 per cent growth in sales revenue to Tk 14.13 billion.

Despite its record profit, the board of the multinational company did not recommend any final dividend for 2023 as it had already paid a 750 per cent interim cash dividend in two phases (450 per cent and 300 per cent) for the year. It is the lowest dividend since 2020.

Company Secretary Md Sahabuddin could not be reached over phone for comments.

Contacted, an official of the company who declined to be named said the revenue growth was driven by a healthy mix in the product portfolio dominated by hair oil and baby-care products.

Marico launched ‘Parachute Just for Baby Shampoo’ last year, extending its comprehensive range of baby-care products.

Marico also launched three new products in shampoo and hair care categories in 2021 and 2022, which helped boost its business growth, the company official said.

However, he said, the higher cost of production and exchange rate volatility slowed down the profit growth. Otherwise, the net profit would be much higher, he added.

The company’s cost of production rose 14 per cent year-on-year to Tk 6.18 billion during the year as raw material prices rose amid sharp depreciation of local currency against the dollar.

The cost of goods sold, which is the sum of all direct costs associated with making a product, was more than 48 per cent of Marico’s total sales in 2023.

Listed in 2009, the company’s stock price has been languishing at the floor price at Tk 2,421.50 each since October 18 last year.

Marico Bangladesh started its journey 24 years back with its flagship brand, Parachute Coconut Oil. Marico Bangladesh is the first subsidiary of Indian Marico Ltd.

Since then, the company has expanded to 42 brands in 10 categories, including hair care, skincare, baby-care, hygiene and food products.

Parachute coconut oil holds a leadership position in the branded coconut oil market of Bangladesh.

To meet the growing demand for coconut oil and food products, the company invested Tk 292 million to set up a new manufacturing unit three years back in its factory site in Gazipur.

Marico has also made an investment of Tk 2.27 billion in phases in a new manufacturing unit in Mirsarai Economic Zone since 2021 for enhancing its production capacity.

Marico is one of the fastest-growing fast-moving consumer goods companies in Bangladesh.

Source: The Financial Express