Marico Posted Profit Growth Despite Adverse Macro-Economic Situation

Brand TrackFebruary 28, 20231 Mins read441

Marico Posted Profit Growth Despite Adverse Macro-Economic Situation

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. The company behind the brand Parachute has been able to grow its revenue by 8.2% YoY in 9M’22-23 (April 22-Dec 22). Although it failed to maintain double-digit revenue growth like the last three comparable periods, the growth is commendable considering the reduction of consumer spending.

Parachute Coconut Oil the flagship brand of Marico has been the key contributor to revenue growth with Tk 6,450.3 Mn (62.5% of total revenue) in 9M’22-23. The segment grew by Tk 381.1 Mn compared to the same period last year.

Value Added Hair Oil products like Parachute Advansed Hair Oil, Parachute Advansed Aloe Vera, Nihar Lovely, etc. contributed to about 27.0% of the total revenue with Tk 2,705.9 Mn sales. Health & Beauty, Baby Segment & Others segment contributed the rest of 10.4% of the total revenue.

In terms of domestic and export sales, domestic sales grew by 9.8% YoY whereas export sales declined by 66.9% YoY. The domestic sale was Tk 10,855.6 Mn in 9M’22-23 which was Tk 9,889.7 Mn in the same period last year. Export sales decreased from Tk 205.2 Mn in 9M’21-22 to Tk 67.9 Mn in 9M’22-23.

The gross profit of the company only increased by 1.5% YoY mainly due to the reduction in gross margin. Gross margin decreased to 51.2% from 54.6% in the same period last year. Drastic devaluation of the taka against the dollar was the key contributor to raw materials cost.

However, the company managed its operations effectively which allowed them to grow its operating profit by 7.4%. Marico decreased its marketing, selling, and distribution costs by 22.8% compared to the same period last year. Hence, Marico was able to grow its profit by 4.8% YoY in 9M’22-23. The profit of the company was Tk 2,975.1 in 9M’22-23 which maintained a healthy net profit margin of 27.2%.