The cooling-off raw material prices on the global market helped Marico Bangladesh's quarterly profit grow by 13 per cent to Tk 1.10 billion in the October-December 2023, compared to the same quarter a year earlier.
Also, higher net finance income contributed to boosting the fast-moving consumer goods company's profit although its revenue declined slightly.
The cost of goods sold, which is the sum of all direct costs associated with making a product, accounted for 42 per cent of Marico's total sales for the December quarter while it was 50 per cent for the same quarter a year before.
As a result, the multinational company's costs of sales fell by 21 per cent year on year to Tk 1.43 billion in the October-December quarter.
The company's earnings per share stood at Tk 34.93 in the third quarter, whose financial year runs from April to March, while the EPS was Tk 30.93 for the same quarter a year before, according to un-audited financial statements published on Thursday.
The fall in raw materials prices on the international market coupled with increasing net finance income contributed to the profit growth, said an official of the company.
Despite challenges, Marico managed to lower the costs of sales. As a result, operating profit increased by 12 per cent to Tk 1.39 billion.
At the same time, its net finance income jumped 22 per cent year on year to Tk 109 million in the December quarter due to an increase in the interest rate.
Marico Bangladesh's nine-month profit also soared 21 per cent year on year to Tk 3.60 billion for April-December while revenue grew 1.6 per cent to Tk 11.10 billion during the period.
Marico Bangladesh also made a record highest annual profit of Tk 3.87 billion for the financial year ended on March 31, 2023 and paid a total of 750 per cent cash dividend.
Marico Bangladesh, the first subsidiary of Indian Marico Ltd., started its journey 25 years back 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.
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, the company invested Tk 292 million and set up a new manufacturing unit four years back in its factory site in Gazipur.
Marico Bangladesh got listed on the stock market in 2009. Its stock closed at Tk 2580.5 on Thursday, losing 1.19 per cent over the day before.
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