Marico Posted Profit Growth Despite Adverse Macro-Economic Situation2 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. 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.

Marico 1

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.

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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.

Marico 2

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.

Marico 3

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%.

Marico 4

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