Marico Bangladesh to repatriate record Tk536cr profits to India

Highlights

• Recommended 440% cash dividend for Oct-Dec
• Paid 450% interim cash dividend for Jul-Sep
• Paid 1,000% cash dividend for Apr-Jun
• Profit stands at Tk459cr in Apr-Dec
• Revenue of Tk1,245cr in Apr-Dec

Marico Bangladesh, a subsidiary of India-based multinational personal care leader Marico Limited, has announced plans to repatriate a historic Tk536 crore in profits back to India as dividends. 

The company declared a record 1,890% interim cash dividend, amounting to Tk596 crore, for the April-December period of FY2024-25. Marico Limited, which holds a 90% stake in the Bangladesh subsidiary, will receive the majority of this payout.

Marico Bangladesh, which follows a March-ended fiscal year, had already disbursed a 1,000% interim cash dividend for the April-June quarter and a 450% interim cash dividend for the July-September quarter. 

The remaining 440% interim cash dividend, announced on Monday (27 January), will be paid after the record date scheduled for 23 February.

The dividend payout will be sourced from the company's net profit of Tk458 crore earned in the first nine months of FY25, with the remaining amount drawn from retained earnings, which stand at Tk700 crore.

Strong performance amid challenges

Despite the challenging business environment, Marico Bangladesh's profits surged by 28% year-on-year profit growth, reaching Tk458.79 crore for the April-December period. Revenue also rose by 12% to Tk1,245 crore compared to the same period in FY24.

In the October-December quarter alone, revenue increased by 20% to Tk404 crore, while profit rose by 27% to Tk139.68 crore.

Marico Bangladesh, widely recognised for its flagship brand Parachute Coconut Oil, entered the Bangladeshi market in 1999. Since then, it has expanded its portfolio from a single product to over 20 brands in the personal care and food categories.

Listed on both the Dhaka and Chittagong stock exchanges since 2009, the company has a paid-up capital of Tk31.50 crore. on Tuesday (28 January), its shares closed at Tk2,321 on the Dhaka Stock Exchange. 

Investments

To solidify its market presence, Marico Bangladesh has been diversifying its product offerings and investing heavily in production capacity. 

In early 2020, the company invested Tk29.3 crore to expand its factory in Gazipur and establish a new manufacturing line to meet the growing demand for coconut oil and food products.

Later in October 2020, Marico announced an additional Tk227 crore investment to strengthen its "Made in Bangladesh" production capabilities. This initiative included the construction of a new plant in the Mirsarai Economic Zone, intended to support Marico's long-term growth aspirations.

Commercial production at the third manufacturing unit in Mirsarai started in September 2023.