Marico Bangladesh profit surges 29% in Apr-Jun

Marico Bangladesh has reported a 29% growth in profit during the April-June quarter of 2023, despite facing challenges such as high inflation, shortages in fuel and electricity supply, and a dollar crisis.

According to its unaudited financial statement approved in its board meeting on Wednesday, the first-moving consumer goods (FMCG) sector company achieved growth by reducing marketing and selling costs.

During the quarter, its net profit was Tk133 crore, which was Tk103 crore at the same time a year ago.

Its earnings per share stood at Tk42.18 at the end of June.

Earlier, it paid a 750% cash dividend as an interim payment to its shareholders.

However, Marico's shares were stuck at the floor price of Tk2,421.50 each at the Dhaka Stock Exchange.

Marico started its business in Bangladesh in 1999 with its flagship brand – Parachute Coconut Oil.

Since then, it has transformed itself from a single brand to more than 20 brands in personal care and food categories.

Marico Bangladesh got listed on both of the country's stock exchanges in 2009. Its paid-up capital is Tk31.50 crore. But its sponsors and directors hold 90% of the shares, while general investors have only 1.49%. The remaining shares are held by institutions and foreign investors.

To grasp market share, the company has been diversifying product portfolios and meeting growing demand. It has also been investing in expanding production capacity.

To meet the growing demand for coconut oil and food products, it invested Tk29.3 crore at the beginning of 2020 to expand its factory capacity in Gazipur and set up a new manufacturing line.

In October 2020, the company decided to invest Tk227 crore in enhancing its "Made in Bangladesh" production.

With this investment, the company has plans to set up a new plant in the Mirsarai Economic Zone.