Marico Bangladesh posts record profit amid pandemic

Marico Bangladesh Limited - an India-based multinational company - made record profits in their fiscal year that started in April 2020 and ended in March 2021, despite the dire situation of the country due to the ongoing coronavirus pandemic.

The net profit of the company stood at Tk310.87 crore in their fiscal 2020-21, which was 17% up compared to the previous fiscal. 

The company's earnings per share (EPS) stood at Tk98.69 in the last fiscal. 

On 28 October last year, Marico Chairman Saugata Gupta said on an earnings call from their company headquarters in India, "We achieved our biggest success in Bangladesh after diversifying our portfolio."

Marico started in Bangladesh back in 1999 with their flagship brand, Parachute Coconut Oil. Since then, the company has transformed itself from a single brand to 29 brands in personal care and food categories.

As portfolio diversification, Marico launched its first male grooming brand of 'Studio X' in Bangladesh with a wide range of premium products in February last year. This range includes shampoos, face washes, hair gels, and deodorants for men.

The company also launched the Mediker SafeLife hand sanitiser and hand-wash in mid April last year, in keeping with the Covid-19 pandemic market.

According to the company's financial statements, coconut oil contributed the most in revenue by posting stellar volume growth. Saffola edible oil sales volume grew in double digits for fiscal 2020-21 and value added hair oils firmly moved along a sustainably recovering trajectory, with high double digit volume growth in that fiscal.

Following the profit growth, the company has declared a 200% final cash dividend to shareholders for fiscal 2020-21.

Earlier, it paid a 700% interim cash dividend based on its quarterly financial reports.

To meet the growing demand for coconut oil and food products, the company 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 last year, the company decided to invest Tk227 crore on enhancing its 'Made in Bangladesh' production.  With this investment, the company has plans to set up a new plant in the Mirsarai Economic Zone.

The investment is intended to support Marico's long-term growth aspirations, a company official said.

Managing Director Ashish Goupal said, "We are investing Tk227 crore on capacity expansion. The right socio-economic indicators are in place to unlock the potential of Bangladesh in a post-Covid-19 world."

The government's vision of creating digital governance and push for putting the economy on a fast track, offers an enabling environment for multinational players to invest in and be a part of Bangladesh's growth journey, Ashish added.

Marico Bangladesh was listed on both stock exchanges in 2009. Its paid-up capital is Tk31.50 crore.

On Wednesday, the company's share price fell 0.99% to Tk2,051.70 per share at the Dhaka Stock Exchange.

As of 31 March 2021, sponsors and directors jointly had a 90% stake in the company, institutional investors 4.71%, foreign investors 3.35%, and general investors 1.94%.