Marico Bangladesh Limited, the manufacturer of Parachute coconut oil and a leading player in the country’s hair and personal care industry, reported a 7.0% year-on-year decline in net profit for the first half (H1) of FY 2026–27, despite recording revenue growth of 4.4%.
According to its latest financial results, the company’s net profit fell to BDT 3,239.0 million from BDT 3,481.4 million in the corresponding period of the previous fiscal year. This marks Marico Bangladesh’s first H1 profit contraction in five years, signaling pressure on profitability despite continued revenue growth.
Single-Digit Revenue Growth
The company reported a 4.4% year-on-year increase in revenue to BDT 10,560.7 million in H1 FY 2026–27, marking its slowest revenue growth in five years. Despite the moderation, the company maintained a compound annual revenue growth rate (CAGR) of 9.5% since H1 FY 2022–23.
Parachute Coconut Oil, the company’s largest revenue contributor, recorded marginal growth of 1.0% to BDT 6,039.6 million, accounting for 57.2% of total revenue. Meanwhile, the Value-Added Hair Oil (VAHO) segment contracted 7.0% to BDT 2,751.4 million, reducing its revenue contribution to 26.1% from 29.2% a year earlier.
In contrast, the Health & Beauty segment emerged as the strongest growth driver, with revenue surging 59.7% to BDT 1,228.7 million. Its share of total revenue increased from 7.6% to 11.6%. Notably, the segment’s incremental revenue exceeded the company’s overall revenue increase, indicating a combined contraction across the remaining portfolio.
Elsewhere, the ‘Others’ category, comprising male grooming products, by-products and other offerings, registered 53.8% growth, followed by Color at 34.8% and Baby Care at 2.6%.
Segment | H1 26-27 | H1 25-26 | Growth | Share of revenue |
|---|---|---|---|---|
Parachute Coconut Oil | 6,039.6 | 5,981.6 | 1.0% | 57.2% |
Value Added Hair Oil (VAHO) | 2,751.4 | 2,957.2 | -7.0% | 26.1% |
Health & Beauty | 1,228.7 | 769.2 | 59.7% | 11.6% |
Others* | 345.5 | 224.6 | 53.8% | 3.3% |
Baby | 171.8 | 167.4 | 2.6% | 1.6% |
Color | 23.8 | 17.6 | 34.8% | 0.2% |
Total | 10,560.7 | 10,117.6 | 4.4% | 100.0% |
*Others include male grooming, by-products and others. Values in BDT million.
The two core oil segments now account for 83.2% of revenue, down from 88.3% a year ago, so growth is increasingly coming from newer categories.
Gross Profit Declines as Cost of Sales Jumps 10%
Marico Bangladesh’s gross profit declined by 0.6% year-on-year to BDT 5,312.9 million in H1 FY 2026–27, marking its first contraction in the five-year review period. Cost of sales increased by 10.0% to BDT 5,247.8 million, growing at more than twice the pace of revenue and placing further pressure on profitability.
Consequently, the company’s gross profit margin narrowed by 254 basis points to 50.3%, compared with 52.8% in the corresponding period of the previous fiscal year. This marks the second consecutive year of margin compression, with gross margin declining by more than 10 percentage points from its H1 FY 2024–25 peak of 60.6%.
Absence of Last Year’s Other Income Pulls Operating Profit Down
Its operating profit declined by 9.2% year-on-year to BDT 4,025.8 million in H1 FY 2026–27, with its operating profit margin narrowing to 38.1% from 43.8% in the corresponding period of the previous fiscal year.
The decline was largely attributable to a high base effect, as other income fell sharply from BDT 357.5 million in H1 FY 2025–26 to BDT 21.8 million in the current period. Excluding other income, operating profit recorded a more moderate decline of 1.8%, falling to BDT 4,004.0 million from BDT 4,075.8 million.
Operating expenses showed contrasting trends. General and administrative expenses increased by 12.4% to BDT 829.3 million, raising their share of revenue to 7.9% from 7.3%. In contrast, marketing, selling and distribution expenses declined by 10.1% to BDT 479.5 million, reducing their share of revenue to 4.5% from 5.3%. Consequently, combined operating expenses edged down to 12.4% of revenue from 12.6%, providing some relief against the decline in gross profit margin.
The company’s finance position, however, improved considerably. While finance income fell by 68.7% to BDT 75.4 million, finance costs dropped by a sharper 91.4% to BDT 24.6 million from BDT 287.6 million in the previous year. This shifted Marico Bangladesh from a net finance expense to a net finance income of BDT 50.8 million, partially offsetting the decline in operating earnings.
Despite lower finance costs and relatively stable operating expense ratios, profit before Workers’ Profit Participation Fund (WPPF) declined by 7.1% to BDT 4,076.6 million.
Net profit fell 7.0% to BDT 3,239.0 million and the net margin dropped to 30.7% from 34.4%, well below the 38.0% peak two years ago. Even so, profit is still 1.5% higher than in H1 2024-25 and has grown at a compound annual rate of 12.8% since H1 2022-23.
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