Marico revenues grow but higher taxes erode profits

The profit margin of Marico Bangladesh Limited – an India-based multinational company – shrank in the March-June quarter – despite a 9% growth in revenue – due to a sharp rise in income tax expenses.

Following financial disclosures, its shares closed 0.58% or Tk14.1 lower at Tk2,418 each on the Dhaka Stock Exchange (DSE) on Wednesday.

Marico starts its financial year in March. According to its unaudited financials, the company's profits before tax increased 4.52% compared to the same period in the previous year.

But its net profit declined 5% to Tk102.90 crore as income tax expenses rose 56%.

Based on three-month financials, Marico, which listed on Bangladesh's stock exchanges in 2009, has recommended a 300% interim cash dividend for its shareholders.

After the board of directors' meeting, the multinational company revealed its financials for the first quarter on the country's premier bourse.

During the period, its revenue increased to Tk364.65 crore from Tk334.40 crore a year ago.

Marico started out in Bangladesh in 1999 with its flagship brand, Parachute Coconut Oil.

Since then, the company has expanded its business to 29 brands in personal care and food items, such as Saffola edible oil.

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