Marico Bangladesh continues its revenue growth in 9M’21-222 min read
Marico Bangladesh Limited, one of the leading FMCG companies in Bangladesh has recently posted its financial report for the period Apr’21-Dec’21. Revenue of the company increased by 15.1% YoY from Tk 8,769.6 Mn in 9M’20-21 to Tk 10,094.9 Mn in 9M’21-22. Profit grew by 13.5% YoY from Tk 2,499.6 Mn in 9M’20-21 to Tk 2,837.6 Mn in 9M’21-22.
Marico’s revenue grew by 15.1% YoY mainly due to strong growth in Parachute Coconut Oil and Value-Added Hair Oil (VAHO) segment. Parachute Coconut Oil’s revenue grew by 15.0% YoY from Tk 5,608.1 Mn in 9M’20-21 to Tk 6,450.3 Mn in 9M’21-22. The segment remains the largest contributor to total revenue by contributing 63.9% of the total revenue of Marico. However, the dependency on the segment is continuously declining as the segment used to contribute more than 80% of the total revenue. VAHO segment’s revenue increased by 16.6% YoY from Tk 2,321.1 Mn in 9M’20-21 to Tk 2,705.9 Mn in 9M’21-22. Color is the only segment which declined in the period by 1.4%.
Marico launched “Parachute Just for Baby Shampoo” during Q3’21-22, which extended its range of baby care products.
Gross Profit increased by only 6.5% YoY mainly due to higher raw material prices. Cost of raw materials increased by 27.6% YoY in 9M’21-22. Gross profit margin declined by 4.4% from 59.0% in 9M’20-21 to 54.6% in 9M’21-22.
Profit increased by 13.5% YoY mainly due to higher sales, lower opex growth compared to sales and lower tax expense. General and Administrative grew by 7.9% YoY from Tk 789.4 Mn in 9M’20-21 to Tk 852.1 Mn in 9M’21-22. Marketing selling and distribution expenses increased by only 0.7% YoY from Tk 982.2 Mn in 9M’20-21 to Tk 988.9 Mn in 9M’21-22. Marketing selling and distribution expense as a % of sales declined from 11.2% in 9M’20-21 to 9.8% in 9M’21-22. Tax expenses decreased by 17.4% YoY from Tk 884.0 Mn in 9M’20-21 to Tk 730.3 Mn in 9M’21-22.
Marico Bangladesh continues its splendid performance by continuing to grow at double digits in terms of revenue. The company is achieving the success by continuously creating new products to cater to the growing consumer market of Bangladesh. Dependency on Parachute Coconut Oil is gradually decreasing which is also a good sign for the future growth for the company. However, in the coming quarters the company might still face the inflationary pressure on raw materials prices.
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