Marico Bangladesh Limited, the maker of Parachute coconut oil and a leading name in the country’s hair and personal care market, published its results for the first quarter (Q1) of FY 2026-27. The company posted a net profit of BDT 1,704.8 million, down 12.4% from the same quarter last year. This is the first Q1 profit decline in the last five years, after growth of 12.7% a year earlier. Revenue still grew 4.1%, but cost of sales jumped 18.7%, which cut the gross margin sharply.
Marico | Single-Digit Revenue Growth
Source: Company financials. Q1 figures in BDT million.
Q1 revenue rose 4.1% to BDT 5,318.6 million. This is the slowest growth in the period and a sharp slowdown from 17.2% (BDT 750.8 million) in Q1 FY 2025-26. Even so, revenue has grown at a compound annual rate of 9.9% since Q1 FY 2022-23.
The segment data shows a weaker core and a fast-growing new base. Parachute Coconut Oil, still 57.2% of revenue, was almost flat at BDT 3,042.0 million (down 0.6%). Value Added Hair Oil (VAHO) fell 9.0% to BDT 1,420.0 million, losing BDT 141.1 million. Together, these two segments lost BDT 160.6 million of sales and their combined share fell to 83.9% from 90.5%. Health & Beauty nearly doubled, up 96.2% to BDT 586.3 million, and added BDT 287.5 million, more than the entire increase in revenue. Others (male grooming, by-products and others) also grew 97.3% to BDT 180.5 million, while Baby segment fell 16.5%.
Segment | Q1 26-27 | Q1 25-26 | Growth | Share of revenue |
|---|---|---|---|---|
Parachute Coconut Oil | 3,042.0 | 3,061.5 | -0.6% | 57.2% |
Value Added Hair Oil (VAHO) | 1,420.0 | 1,561.0 | -9.0% | 26.7% |
Health & Beauty | 586.3 | 298.8 | 96.2% | 11.0% |
Others* | 180.5 | 91.5 | 97.3% | 3.4% |
Baby | 72.7 | 87.0 | -16.5% | 1.4% |
Color | 17.2 | 10.5 | 63.1% | 0.3% |
Total | 5,318.6 | 5,110.3 | 4.1% | 100.0% |
*Others include male grooming, by-products and others. Values in BDT million.
In short, Health & Beauty and Others made up for a decline in the two oil segments. Growth now depends much more on newer categories.
Gross Profit Falls as Cost of Sales Jumps 18.7%
Source: Company financials. Gross margin = gross profit / revenue.
Gross profit fell 7.6% to BDT 2,632.2 million, a decline of BDT 215.2 million. Cost of sales rose 18.7% to BDT 2,686.4 million, far outpacing revenue growth of 4.1%. Gross profit is now even below the BDT 2,671.5 million earned two years ago (Q1 FY 2024-25), although revenue is 22.0% higher.
The gross margin dropped by 623 basis points to 49.5% from 55.7%. It is the lowest Q1 margin in five years and is 11.8 percentage points below the peak of 61.3% in Q1 FY 2024-25. The margin has now fallen for two consecutive years. Since Q1 FY 2024-25, cost of sales has risen 59.1% while revenue has risen 22.0%.
Lower Finance Income Deepens the Profit Decline
Operating profit fell 7.5% to BDT 2,070.1 million, and the margin dropped to 38.9% from 43.8%. The fall in gross profit was partly cushioned by lower spending. Marketing, selling and distribution expenses were cut 25.3% to BDT 175.9 million (3.3% of revenue, from 4.6%), offsetting about 28% of the gross profit decline. General and administrative expenses rose 3.4% to BDT 396.5 million (7.5% of revenue, unchanged). Total operating expenses fell to 10.8% of revenue from 12.1%, which is why the operating margin fell less than the gross margin. Other income added BDT 10.4 million to the operating profit.
Finance income dropped 76.3% to BDT 52.2 million from BDT 220.1 million, while finance costs were BDT 9.8 million. Net finance income fell to BDT 42.3 million from BDT 212.5 million. As a result, profit before WPPF fell 13.8% to BDT 2,112.4 million. The BDT 337.5 million decline was split almost evenly: BDT 167.4 million from operations and BDT 170.2 million from lower net finance income.
Tax expense fell 20.9% to BDT 302.0 million, more than the fall in profit, so the effective tax rate eased to 15.1% from 16.4%. It was 22.2% in Q1 FY 2024-25.
Source: Company financials. Q1 figures in BDT million.
Net profit came in at BDT 1,704.8 million, down BDT 240.9 million compared to same period last year. The net margin fell to 32.1% from 38.1%. Profit is slightly below the BDT 1,725.7 million of Q1 FY 2024-25 but remains 65.7% higher than in Q1 FY 2022-23.
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