Marico Bangladesh, a leading FMCG company in the country, has maintained its robust profit growth trajectory despite political challenges during the July to September quarter. In the first half of the 2024-25 fiscal year (April to September 2024), the company reported a profit of Tk 3,191.1 million.
Strong Revenue Growth
The profitability of Marico Bangladesh is underpinned by significant sales growth. Revenue for H1 2024-25 increased by 8.9% year-on-year, driven primarily by the Parachute Coconut Oil, Value Added Hair Oil (VAHO), and Health & Beauty segments. The Parachute Coconut Oil segment alone contributed an increase of Tk 280.4 million, while the VAHO and Health & Beauty segments recorded revenue growth of Tk 219.0 million and Tk 119.5 million, respectively.
The company’s dependency on Parachute Coconut Oil is gradually decreasing as other segments, particularly VAHO and Health & Beauty, continue to experience double-digit growth. This shift aligns with Marico’s strategy to diversify its revenue streams across a wider range of FMCG products.
Read more: Grameenphone Achieves Steady Profit Growth Amid Q3 2024 Challenge
Domestic sales rose by 8.7% year-on-year to Tk 8,355.7 million, while export sales showed a remarkable increase of 55.7% compared to the same period last year.
Lower Costs Led to Higher Gross Profit Margin
Cost of sales increased by only 1.4%, contributing to double-digit growth in gross profit. The gross profit for H1 2024-25 rose by 14.5% year-on-year, resulting in a gross profit margin of 60.6% – the highest in the past five years.
Higher Operating and Finance Income Boosted Profit Growth
Operating income saw a 15.1% increase due to slower growth in expenses relative to gross profit. General and administrative expenses increased by 11.6% year-on-year to Tk 697.2 million, while marketing, selling, and distribution expenses rose by 13.4% year-on-year to Tk 599.7 million. Consequently, Marico Bangladesh posted an operating income of Tk 3,812.5 million for H1 2024-25.
The company also achieved significant growth in finance income, which rose by 97.3% year-on-year to Tk 431.7 million, primarily from investments in financial instruments.
As a result, Marico Bangladesh recorded a profit of Tk 3,191.1 million in H1 2024-25.
For more updates, be with Markedium.
Leave a comment