Despite a turbulent economic environment, Marico Bangladesh has delivered record financial performance for the year ending March this year, supported by strong brand equity, product innovation and disciplined cost management.
The fast-moving consumer goods (FMCG) company's net profit rose 10 per cent to Tk 6.49 billion, while revenue jumped 27 per cent to Tk 20.71 billion for the year, according to its latest annual report.
The profit growth reflects operational efficiency of the company, whose financial year runs from April to March, improved product mix and tight control over costs, even as many local companies struggled amid high inflation and subdued consumer demand.
The strong performance was driven by the continued dominance of its flagship Parachute coconut oil, alongside growth in value-added hair oils, skincare and wellness segments.
Marico Bangladesh expects to sustain its growth momentum through continued innovation, cost efficiency and expansion in both domestic and export markets.
Based on strong profit, the company has declared a 500 per cent final cash dividend for the year ending March this year, taking the total dividend to 2,075 per cent for the year including 1,575 per cent interim cash dividends that had already been paid.
However, the company disbursed a 3,840 per cent cash dividend for FY25.
"Profit increased mainly due to increased revenue, improvement in gross profit margin and higher net finance income," said the company in its earnings note.
The annual audited financial statement of the company was approved at a board meeting on Wednesday.
The growth is significant for a listed company against the backdrop of the prevailing challenging economic environment and high inflation, due to which many local companies have been struggling to survive.
Analysts attributed the high dividend payouts to the improved foreign exchange reserves, allowing multinational companies to repatriate profits more smoothly than before.
While coconut oil remains the largest contributor to revenue growth, value-added hair oil, beauty and health products, and men's grooming segments have showcased strong growth momentum.
Marico, which sells beauty and wellness products, started operations in Bangladesh in 2000 with its flagship brand "Parachute" coconut oil.
Since then, the company has expanded to more than 42 brands in 10 categories, including hair care, skincare, baby-care, hygiene and food products.
Marico, which operates two plants in Gazipur, started production at its third factory in July 2023 to meet the growing demand for coconut oil and food products.
Marico set up its third manufacturing unit at the National Special Economic Zone (NSEZ) at Mirsarai in Chattogram.
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