Marico Bangladesh Posts Profit Growth Of 29.1% In Q1’23-242 min read

Marico Bangladesh Limited, one of the leading FMCG companies in Bangladesh has been able to maintain its growth trajectory despite the adverse macro-economic scenario. Marico posted revenue growth of 8.7% YoY in Q1’23-24 (April 23-June’23) despite people cutting discretionary spending due to high inflation.

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The growth in revenue is mainly driven by domestic business, which grew by 8.9% YoY.  Revenue in domestic business was Tk 3,944.8 million in Q1’23-24 which was Tk 3,622.1 million in the same period last year. Export business which is still a very small part of Marico Bangladesh’s business decreased by 28.9% compared to the same period last year.

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In the domestic business, Parachute sales were the main driver of revenue growth. Revenue from this single brand increased by 8.5% compared to the same period last year. The second highest growth driver was the health & beauty segment which grew by 64.1% YoY in Q1’23-24. Revenue from the segment is on an upward trajectory and now contributes about 4.1% of the total revenue.

Read more: Visa Plans To Expand Regional Footprint, Opens New Office In Dhaka

In terms of revenue contribution, VAHO (Value Added Hair Oil) remains the second highest contributor of revenue with 26.7% of the total revenue.

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The gross profit of the company increased by 21.2% YoY mainly due to increased margins. The gross profit margin of the company was 58.2% in Q1’23-24 which was 52.2% in Q1’22-23. Marico’s cost of goods sold decreased by 5.1% YoY despite an increase in revenue. Copra price which is the main raw material of the company decreased which contributed to the margin expansion.

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Despite an increase in gross profit, the company was efficient in maintaining its operating expenses. General and administrative expenses increased by 15.4% YoY from Tk 257.6 million in Q1’22-23 to Tk 297.2 million in Q1’23-24. Marketing and distribution expenses increased by only 2.8% YoY from Tk 269.8 million in Q1’22-23 to Tk 277.3 million in Q1’23-24.

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Marico posted a profit growth of 29.1% YoY mainly due to lower raw materials and operating expenses. Due to efficient operations management, the company was able to post Tk 1,741.4 million of operating profit which is a growth of 26.0% YoY.

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