Marico exceeds Tk1,000cr sales for 2nd time

Marico Bangladesh Limited – an India-based multinational company – has passed another milestone in sales, with its revenue exceeding the Tk1,000 crore threshold for the second time.

One of the top brands in the beauty and wellness space in Bangladesh, Marico posted more than 15% growth in sales year on year.

The company also reported a record profit. It saw a 14% increase in net profit in the financial year that started in April 2021 and ended in March 2022.

On 2 June, in its board meeting, the company approved financials for that year through a digital platform and recommended a 450% interim cash dividend before the end of the first quarter from April-June of 2022-23.

Manufacturing and marketing of the fast-moving consumer goods (FMCG) continued to remain the core business activities of Marico Bangladesh Limited.

Year on year, its business is growing by more than 10% owing to product portfolio diversification, and production capacity expansion through a fresh investment.

According to the company's financials, despite the pandemic disruptions, in the previous financial year that ended in March 2021, Marico Bangladesh had reached Tk1,131 crore sales for the first time which have jumped to Tk1,303 crore in the just concluded financial year.

The company has also reported a Tk355 crore net profit for the first time.

Its expenses in marketing, sales and distribution have declined 7% to Tk125 crore.

According to its financials, in the last five years, its net sales increased 67%, and profit almost doubled. In the financial year that ended in 2018, its net sales stood at Tk781 crore, and profit at Tk164 crore.

Following profit growth, its dividend payment also significantly increased compared to the last five years.

In the financial year that ended in 2018, the company paid a 600% cash dividend to its shareholders. It approved an 800% cash dividend for the just concluded year.

In the previous year, it had paid a 900% cash dividend.

Marico started its business in Bangladesh back in 1999 with its flagship brand, Parachute Coconut Oil.

Since then, the company has transformed itself from a single brand to more than 20 brands in personal care and food categories.

Marico Bangladesh got listed on the country's both stock exchanges in 2009. Its paid-up capital is Tk31.50 crore.

The company manufactures parachute, parachute advanced, just for baby, nihar, parachute skinpure, mediker safelife, saffola active, studio x, hair code and livon.

It has continued diversification of its portfolio with new products and brand launches in the hygiene, hair care, and baby care and food category.

To grasp the market share, the company has been diversifying product portfolios and meeting the growing demand, it also has been investing for expanding production capacity.

As portfolio diversification, Marico launched its first male grooming brand "Studio X" in Bangladesh with a wide range of premium products in February 2020.

The company also launched the Mediker SafeLife hand sanitiser and hand wash in mid-April of that year, in keeping the Covid-19 pandemic market in view.

To meet the growing demand for coconut oil and food products, it invested Tk29.3 crore at the beginning of 2020 to expand its factory capacity in Gazipur and set up a new manufacturing line.

In October 2020, the company decided to invest Tk227 crore in enhancing its "Made in Bangladesh" production.

With this investment, the company has plans to set up a new plant in the Mirsarai Economic Zone.