Marico Bangladesh Ltd (MBL), a prominent consumer goods company, announced a growth of over 20 percent in sales during the first half of its fiscal year, representing the highest increase in at least 15 years. The company’s half-yearly financial report revealed that its sales surged to Tk 1,012 crore between April and September, compared to Tk 840 crore in the corresponding period last year.
This recent revenue growth marks MBL’s highest performance since the fiscal year 2009-10, coinciding with its listing on stock exchanges. The company recorded its second-highest sales growth of 14 percent in the fiscal year 2021-22. Headquartered in Mumbai, MBL follows April to March as its financial year, aligning with Marico Limited, its parent company that holds a 90 percent stake.
Despite the notable increase in sales, MBL experienced more moderate profit growth, with net profit rising by 9 percent year-on-year to Tk 348 crore in the April-September period. The company attributed its sales growth to effective product offerings, strong consumer confidence, and ongoing product diversification. However, profitability was impacted by escalating input costs due to inflation.
Marico’s cost of goods sold, a crucial factor influencing profitability, rose to 47 percent of turnover in the first half, up from 39 percent in the same period last year. This signifies a rise in raw material expenses during the current period, affecting profits. Additionally, net finance costs increased, further impacting profitability. Earnings per share climbed to Tk 110.5 from Tk 101.3 a year ago.
The company, known for the popular hair care oil brand Parachute, declared a 500 percent interim cash dividend for its shareholders for the six-month period. Despite this positive news, MBL’s shares dipped around 1 percent to Tk 2,771 at the Dhaka Stock Exchange (DSE) today. Currently, the stock holds the second-highest value on the DSE, trailing behind Reckitt Benckiser (Bangladesh).
MBL commenced operations in January 2000 and initiated production at its filling, crushing, and refinery units in 2002. Over the years, it expanded capacity at its Gazipur manufacturing site in 2012 and 2017. Recently, the company made investments in a new facility at the National Special Economic Zone in Mirsharai, Chattogram.