Marico Bangladesh’s sales growth highest in 15 years

Marico Bangladesh Ltd (MBL), a leading consumer goods company, reported over 20 percent year-on-year growth in sales in the first half of its financial year, marking its highest growth in at least 15 years.

According to its half-yearly financial statements released today, the listed multinational's sales rose to Tk 1,012 crore in the April-September period, up from Tk 840 crore during the same period last year.

The latest growth in revenue is the company's highest since the financial year 2009-10, when it was listed on the stock exchanges. Its second-highest growth in sales was recorded at 14 percent in the financial year 2021-22.

Headquartered in Mumbai, the company maintains April to March as its financial year in line with Marico Limited, its parent company, which owns 90 percent of its shares.

As per the disclosure, despite the surge in sales, MBL's profit growth was more modest. Net profit rose 9 percent year-on-year to Tk 348 crore in the April-September period.

Responding to queries from The Daily Star, the company said, "Our sales growth was driven by effective product propositions, strong consumer trust, and continued product diversification. However, rising input costs due to inflation have affected our profitability."

Marico's cost of goods sold, a key determinant of profitability, rose to 47 percent of turnover in the first half from 39 percent in the same period last year. This indicates that raw material costs increased during the current period and impacted profits. Net finance costs also rose, further affecting profitability.

Its earnings per share reached Tk 110.5, up from Tk 101.3 a year earlier.

The seller of the popular hair care oil brand Parachute announced a 500 percent interim cash dividend for its shareholders for the six-month period.

Shares of MBL, however, declined around 1 percent to Tk 2,771 at the Dhaka Stock Exchange (DSE) today. The stock is currently the second-highest-valued share in the DSE after Reckitt Benckiser (Bangladesh).

MBL, which started commercial operations in January 2000, began production at its filling, crushing, and refinery units in 2002 and expanded capacity in 2012 and 2017 at its Gazipur manufacturing facility. It has recently invested in a new plant in the National Special Economic Zone at Mirsharai, Chattogram.