Marico profit plunges after four years
Management attributes the profit squeeze to a rise in raw material prices and a decrease in finance income.
Marico Bangladesh Limited, the producer of the popular Parachute brand, reported a 12.38% year-on-year decline in net profit for the April-June quarter of 2026, marking the first time the company has faced a quarterly earnings slump in four years.
According to its latest financial statements, the company's net profit for the quarter stood at Tk170.47 crore, down from Tk194.56 crore in the corresponding period of 2025.
This downturn comes despite a 4% growth in revenue, which reached Tk531.86 crore during the same period. The last time the multinational witnessed a contraction in its first-quarter profit was in 2022.
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The company reported that its earnings per share (EPS) settled at Tk54.12 for the quarter, compared to Tk61.77 a year earlier.
Management attributed the profit squeeze primarily to a sharp rise in raw material prices and a decrease in finance income. Additionally, the net operating cash flow per share (NOCFPS) plummeted to Tk20.28 from Tk66.73, which the company explained was due to significantly higher payments made to suppliers during the three-month period.
Meanwhile, the company's net asset value (NAV) per share rose to Tk146.14 as of 30 June 2026, up from Tk92.02 in March, bolstered by a strong retained earnings position.
Despite the earnings dip, the board of directors declared a substantial 500% interim cash dividend, equivalent to Tk50 per share. The record date for the dividend entitlement has been set for 27 August.
Market analysts noted that while rising input costs remain a challenge for the manufacturing giant, the hefty dividend payout reflects the company's robust cash reserves and continued commitment to shareholder returns.
