Home ›› 29 Apr 2023 ›› Stock
Despite a global macroeconomic storms caused by the Russia-Ukraine war, Marico Bangladesh, a market leader in the country’s beauty and wellness space, posted a 9 per cent profit rise in the fiscal 2022-23, which ended on March 31, 2023.
The listed company, whose flagship brand Parachute is a market leader in the country, reported a net profit of Tk 387 crore in the fiscal 2022–23, against Tk 355 crore in the previous fiscal.
But, multinational company declared a total of 750 per cent cash dividends to its shareholders for the year ended in March 2023, the lowest since 2019.
The company’s revenue jumped to Tk 1,413 crore in the just-concluded fiscal from Tk 1308 crore in the last fiscal, as per its annual financial statements, which were disclosed yesterday.
The company gave a 450 per cent interim cash dividend to its shareholders for mid-Q1 and a 300 per cent cash dividend in Q1 of FY23.
But, its board of directors did not recommend any dividend for the fourth quarter of the just-concluded fiscal.
Stock market insiders said the company declared a lower dividend in FY23 than the previous year amid the ongoing global economic distress, especially the dollar crisis. So, investors have nothing to be disappointed about this.
The company’s earnings per share (EPS) were Tk 122.93 for the year ended March 31, 2023, up from Tk 112.82 for the pre-vious year.
Marico Bangladesh, whose portfolio comprises largely personal grooming products, ranges from hair oil to hair dye, body lotion, baby care, and men’s toiletries to cooking oil.
Marico Bangladesh witnessed significant export growth of over 129 per cent in the fiscal year 2021–22. The contribution of export earnings to the multinational firm’s revenue also rose to 1.80 per cent in the last fiscal year from 0.90 per cent and 0.57 per cent respectively, in the two previous fiscal years.
The company started its export operations back in 2019, and its prime export destinations are India, Nepal, Vietnam, and Middle Eastern countries, according to a report prepared by EBL Securities.
The company produces 99 per cent of its products in Bangladesh. Establishing the first manufacturing unit on a rented property in Gazipur, it commenced commercial production in October 2002.
Later, it grew fast and subsequently became a trusted brand in the beauty and wellness space in Bangladesh.
After securing a strong grip on Bangladesh’s market, the company was now trying to ensure a dominant footprint in global markets.
Starting the journey with a single product, Parachute Coconut Oil, the beauty and wellness brand has over the last decade invested heavily in diversifying its brand portfolio.
The company now touches the lives of one out of every two Bangladeshis with a wide array of brands in various categories, including hair nourishment, edible oil, and male grooming, through a strong distribution network that reaches more than 790,000 outlets throughout the country, according to data available on the company’s website.
Parachute Coconut Oil, accounted for more than 90 per cent of Marico’s revenue till FY12.
But since then, the contribution of other categories, especially value-added hair oil (VAHO), began to increase sharply.
VAHO has been the biggest growth driver for Marico over the last decade as the company gradually rolled out several new brands, products, and SKUs in this category.
In terms of its accounting year from April to March, the company posted Tk 97.43 crore in net profit in the third quarter of the fiscal year 2022-23, up 13 per cent from the profit of Tk 86.15 crore in the same period last year.
The Indian fast-moving consumer goods company’s gross profit margin, however, lowered to 51.22 per cent in the first nine months of FY23 from 54.60 per cent in the same period of FY22 due mainly to a rise in raw material prices.
The company, however, has been successful in its cost-control measures, which helped it secure a healthy profit during that time.
Marico is currently implementing its third manufacturing plant at Bangabandhu Shilpanagar and plans to invest Tk 2.27 bil-lion there. The plant is expected to start commercial operations in 2023.
Incorporated in 1999, Marico Bangladesh started its operations in 2000 and got listed on the stock exchanges in 2009. Its shares closed at Tk 2,421.50 per share on the Dhaka stock exchange on Thursday.
