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Marico BD sees 23pc profit growth in 2019

Babul Barman | September 15, 2019 00:00:00

Marico Bangladesh, a fast-moving consumer goods multinational company, witnessed a steady growth in revenue earnings and dividend payout, among others, in last five years through 'quality products".

The Marico Bangladesh, the first subsidiary of Marico Ltd, has also maintained its position as the most profitable unit of Marico's international business, according to its latest annual report.

The company posted a 23.18 per cent profit growth for the year ended on March 31, 2019 and declared a healthy dividend payout of 650 per cent cash during the period under review.

The company witnessed a strong business performance last year driven by growth of the core categories, launch of new products, augmenting distribution fundamentals and  accelerated capability development, company officials said.

The most successful and significant launch of 2019 was the introduction of Marico Bangladesh range of safe baby care products in fourth quarter of the year comprising baby oil, baby lotion and baby wash, according to the annual report.

Saugata Gupta, chairman of Marico Bangladesh, said in the annual report, the company passed another strong year, with 12.2 per cent revenue growth, 23.18 per cent profit growth and closed with a profit after tax of Tk 2.02 billion.

Mr Gupta informed that Marico introduced eight new and distinctive products into the market this year including an international baby care range.

"We serve the needs of our discerning consumers of Bangladesh with our varied portfolio of 24 brands and continue to broad-base the top line through our marquee brands Parachute, Parachute Advanced, Nihar and Saffola," he said.

He noted that the flagship brand, Parachute has maintained its leadership position and now holds the highest ever market share in the branded coconut oil category.

"We achieved the highest volume growth and highest profit growth in the last five years," said Ashish Goupal, managing director of Marico Bangladesh.

He noted that this performance was delivered by strong growth in our value added hair oils (VAHO) category driven by Parachute Advanced Beliphool & Parachute Advanced Extra Care.

Saffola Active has also seen tremendous growth which contributed to the overall profitability and strengthened the value mix in the business, he added.

The Marico Bangladesh, which was listed on the Dhaka Stock Exchange in 2009, disbursed a total of 650 per cent cash dividend for the year ended on March 31, 2019.

The Marico Bangladesh has also reported earnings per share (EPS) of Tk 64.23, net asset value (NAV) per share of Tk 41.34 and net operating cash flow per share (NOCFPS) of Tk 86.64 for the year ended on March 31, 2019 as against Tk 52.15, Tk 47.38 and Tk 49.22 respectively for the same period of the previous year.

The company also disbursed 250 per cent interim cash dividend based on three months financials for the period ended on June 30, 2019.

The EPS was Tk 26.95 for April-June 2019 as against Tk 17.62 for April-June 2018.

Each share of the Marico Bangladesh traded between Tk 1750 and Tk 1783.90, before closing at Tk 1,761.60 on Thursday on the Dhaka bourse.

Its share hovered between Tk 1095 and Tk 1899.50 in the last one year.

The company's paid-up capital is 315 million, authorised capital is Tk 400 million and the total number of securities is 31.50 million.

Sponsor-directors own 90 per cent stake in the company while institutional investors own 2.73 per cent, foreign investors 6.34 per cent and the general public 0.93 per cent as on August 31, 2019, the DSE data shows.

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