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Marico declares lowest dividend in 8yrs despite rise in profit

Niaz Mahmud
30 Apr 2024 22:06:20 | Update: 30 Apr 2024 23:05:03
Marico declares lowest dividend in 8yrs despite rise in profit

Marico Bangladesh Limited, a publicly traded multinational beauty and wellness brand, has declared its lowest dividend for shareholders — in eight years — for 2024 even though its net profit rose by 19 per cent to Tk 462 crore.

The consumer product manufacturer and marketer declared a 200 per cent final cash dividend for its shareholders for the year that ended on March 31, 2024. The dividend amount was 750 per cent in the previous year.

The declaration came from a board meeting held on Monday, which was disclosed on the Dhaka Stock Exchange (DSE) website on Tuesday.

The multinational company’s net profit rose to Tk 462 crore in the year that ended on March 31, 2024, which was Tk 388 crore the year before, according to the financial statement.

Its earnings per share (EPS) were Tk 146.23 in the last year. It was Tk 122.93 in the previous year [2023].

To approve the dividend and the financial statement, Marico Bangladesh — which announced a 425 per cent dividend back in 2015 — will hold the Annual General Meeting on July 30, and the record date is May 27.

The company’s net asset value (NAV) per share stood at Tk 260.64 and net operating cash flow per share (NOCFPS) at Tk 195.25 for the year that ended on March 2024, compared to Tk 113.85 and Tk 171.23, respectively, for the previous year.

Marico Bangladesh’s total revenue rose to Tk 1,452.41 crore in 2024 from Tk 1,413.57 crore in 2023.

The company expanded its product portfolio in 2011 with the introduction of Parachute Advanced Cooling Hair Oil. Marico boasts an array of brands in various categories, including hair nourishment, edible oil and male grooming. Its other products include Saffola Active Edible Oil, Livon Silky Potion, Set Wet Deodorants and Livon. The main item and brand of the company is Parachute Coconut Hair Oil.

The peer companies within the fast-moving consumer goods (FMCG) industry include Unilever, SQUARE, Hemas Bangladesh, Moushumi Industries, Dabur Bangladesh, Emami Bangladesh, and Reckitt Benckiser among others.

Established in 1999, Marico Bangladesh is a subsidiary of Marico Limited, an emerging FMCG multinational with a presence in 26 countries across Asia and Africa. It was listed on both Dhaka and Chittagong stock exchanges in 2009.

Its shares remained unchanged at Tk 2,328.50 per share on the trading floor of the DSE on Tuesday.

Sponsors and directors jointly held a 90 per cent stake in the company, while institutional investors represented 6.68 per cent, foreign investors 1.89 per cent, and general investors 1.43 per cent till March 2024.

The company set up its bottling operations in Gazipur's Mouchak in 2002 and started a copra oil crushing manufacturing unit in the industrial belt's Bhabanipur area in 2012.