Marico Bangladesh profit surges 29% in Q2
Marico Bangladesh Records Impressive 29% Profit Growth Amidst Economic Challenges.
Despite facing numerous challenges such as high inflation, fuel and electricity shortages, and a dollar crisis, Marico Bangladesh has showcased its resilience and business acumen by achieving a remarkable 29% growth in profit during the April-June quarter of 2023.
As per the unaudited financial statement approved in the recent board meeting on Wednesday, the first-moving consumer goods (FMCG) sector company successfully boosted its profit by implementing measures that reduced marketing and selling costs.
During the quarter, Marico Bangladesh’s net profit soared to Tk133 crore, a significant increase from Tk103 crore during the same period the previous year. The earnings per share for the company stood at Tk42.18 at the end of June.
Demonstrating its commitment to shareholders, Marico Bangladesh paid a 750% cash dividend as an interim payment.
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Despite these achievements, the company’s shares remained stagnant at the floor price of Tk2,421.50 each at the Dhaka Stock Exchange.
Marico Bangladesh began its operations in 1999 with its flagship brand, Parachute Coconut Oil. Over the years, it has evolved into a multi-brand entity with a diverse portfolio of over 20 brands in personal care and food categories.
Listed on both of Bangladesh’s stock exchanges since 2009, the company’s paid-up capital is Tk31.50 crore, with sponsors and directors holding 90% of the shares, and general investors owning only 1.49%. The remaining shares are in the possession of institutions and foreign investors.
To maintain its market share and cater to growing demand, Marico Bangladesh has undertaken strategic initiatives such as diversifying its product portfolios and expanding production capacity. Investments of Tk29.3 crore were made at the beginning of 2020 to augment factory capacity in Gazipur and establish a new manufacturing line, primarily to meet the rising demand for coconut oil and food products.
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In continuation of its growth strategy, the company decided to invest Tk227 crore in expanding its “Made in Bangladesh” production in October 2020. Part of this investment aims to establish a new plant in the Mirsarai Economic Zone, further consolidating Marico’s presence and market position.
