Marico posts robust growth in Q3

Marico Bangladesh Limited, a publicly traded multinational beauty, and wellness brand, posted the highest third quarterly profit in the current fiscal year since fiscal 2019–20.

In terms of the financial year from April 2022 to March 2023, the company posted Tk 97.43 crore in net profit in the third quarter of the current financial year, up 13 per cent against the profit of Tk 86.15 crore in the same period last year.

This refers to that the company recorded a significant year-on-year profit growth in the October-December period of the current financial year by reducing its branding costs.

Company sources familiar with the matter said its profit grew exponentially in the third quarter mainly due to the marketing costs cut, helping to uplift the overall earnings.

The multinational company during the October-December period saw a 28.78 per cent year-on-year decline in its marketing expenses.

Moreover, the listed company’s Q3 marketing expenditure was the lowest for a single quarter in the last three years.

The company had spent Tk 23.38 crore on marketing purposes in Q3 of the current financial year against Tk 32.83 crore in the same period last year.

The Q3 marketing costs were Tk 35.82 crore and Tk 28.03 crore respectively in FY21 and FY20.

The marketing costs of Parachute Coconut Oil, its flagship product, also fell significantly though the product’s sales remained steady in the October-December period, according to the company’s latest financial report.

Against a 13.1 per cent profit rise, the beauty care company’s Q3 revenue surged by 7.03 per cent compared to that in the same period last year. The multinational’s revenues stood at Tk 357.75 crore in the October-December period of the current fiscal year, against Tk 334.23 crore in the same period last year.

Marico Bangladesh’s flagship product – Parachute – completed its 12 years of footprint in the Bangladesh market riding on an ever-growing consumer base in the country.

Marico Bangladesh Limited’s Company Secretary Sahabuddin told The Business Post, “We have released many brands in the market and all of them are very popular among consumers. This is because we have been able to maintain our profit growth despite reducing the costs of marketing and branding.”

“Even during the Covid-19 pandemic time, our third quarterly revenue was more than two-and-a-half crore taka which now surpasses the Tk 350 crore mark. So, it was a logical decision to reduce unnecessary costs to post a steady profit growth,” he added.

The company’s earnings per share (EPS) stood at Tk 30.93 for the Q3 of FY23 against Tk 27.35 for the same period last year.

Its net cash flow per share (NOCFPS) stood at Tk 123.01 for the first nine months (April-December) of the current financial year against Tk 101.75 for the same period last year.

The multinational’s net asset value (NAV) per share stood at Tk 84.81 as on December 2022.

Its shares remained unchanged at Tk 2421.50 per share on the trading floor of the Dhaka Stock Exchange (DSE) on Thursday.

Sponsors and directors jointly held a 90 per cent stake in the company, while institutional investors represented 6.54 per cent, foreign investors 2.33 per cent, and general investors 1.49 per cent till December 2021.

Incorporated in 1999, Marico Bangladesh started its operations in 2000 and got listed on the stock exchanges in 2009.

Marico Bangladesh Launched Haircode Hair Dye in 2009 and Lauched Parachute Advansed Cooling Hail Oil in 2011.