Marico's business gets a boost on new products

Marico Bangladesh's profit rose 8.48 per cent year-on-year for July-September 2022, owing to an increase in sales of its hair oil and baby-care products.
The India-based fast-moving consumer goods company reported that its revenue was up 8.50 per cent in the quarter compared to a year ago.
The revenue growth was driven by a healthy mix in the product portfolio dominated by hair oil and baby-care items, said a company official requesting anonymity.
Marico launched "Parachute Just for Baby Shampoo" in the last quarter of the previous fiscal year ended in March 2022, extending its comprehensive range of baby-care products.
In the last fiscal year from April 2021 to March 2022, Marico launched three new products in shampoo and hair care categories, which helped boost business.
The baby-care portfolio received a positive response from consumers, said the Marico official.
The company's six months' profit for April to September, 2022, shows a marginal year-on-year profit growth -- 1.20 per cent-due to subdued consumption in the April-June quarter as inflation curbed purchasing power.
"Higher cost of production and exchange rate volatility slowed down profit growth," the Marico official said.
The company's cost of production rose 18 per cent to Tk 3.53 billion during the six months through September this year.
Marico's net operating cash flow per share (NOCFPS) almost doubled to Tk 133.08 in April-September 2022 for higher cash collection from sales, he added.
Its share price has been languishing at the floor price, Tk 2,421.50, for the last two weeks.
Marico Bangladesh started its journey 24 years back with its flagship brand, Parachute Coconut Oil. It is the first subsidiary of Marico Ltd.
Since then the company has expanded to 42 brands in 10 categories, including haircare, skincare, babycare, hygiene and food products.
Parachute coconut oil holds a leadership position in the branded coconut oil market of Bangladesh.
To meet the growing demand for coconut oil and food products, it invested Tk 292 million to set up a new manufacturing unit two years back in its factory site in Gazipur.
Marico has also made an investment of Tk 2.27 billion in phases in a new manufacturing unit in Mirsarai Economic Zone since 2021 for enhancing its production capacity.
Marico Bangladesh manufactures 99 per cent of its products in Bangladesh and exports to Nepal, India, Middle-East and Vietnam.
It posted a 14 per cent profit gain for fiscal year 2021-22 ended in March to Tk 3.55 billion. Accordingly, the company disbursed 800 per cent cash dividend.
It also gave 300 per cent interim cash dividend for the first quarter ended in June this year.

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