Niaz Mahmud
Marico Bangladesh, a market leader in the country's beauty and wellness space, witnessed a significant net profit growth of 26.9% in the third quarter (Oct'24-Dec'24) of FY2024-25, combined with margin improvement and better finance income.
Meanwhile, the multinational company's board of directors declared an interim cash dividend of 440% or Tk 44 per share, based on the financials as of December 31, 2024.
During the period, Marico Bangladesh reported a net profit after tax of Tk139 crore, primarily driven by strong revenue growth of 19.7% YoY.
Its earnings per share (EPS) stood at Tk 44.34 for the October-December quarter, up from Tk 34.93 in the same period the previous year, according to its financial statements.
The company attributed the growth to increased revenue, improved gross profit margins, and higher net finance income. Revenue stood at Tk 1,245 crore in the first 9 months of its fiscal year, up from Tk 1,109 crore in the same period the previous year.
However, its cash flow, a major indicator of a company's financial health, fell. Marico's net operating cash flow per share (NOCFPS) fell to Tk 88.35 for the April-December period. It was Tk 143.15 a year earlier, which the company said is primarily due to higher payments to suppliers.
The net asset value (NAV) per share also declined at the end of December 2024 compared to March 2024, as the company's retained earnings dropped following dividend payments during FY25. Including the third quarter earnings, Marico's profit per share in the first nine months of the fiscal year increased 27.5 percent to Tk 145.65 from Tk 114.22 a year earlier.
In a study, BRAC EPL said that the Q3'25 revenue reached Tk 404 crore, reflecting a robust 19.7% YoY despite heightened inflationary pressures and ongoing macroeconomic challenges. While coconut oil (CNO) remains the largest contributor to revenue, the value-added hair oil (VAHO), beauty & health, and men's grooming segments have stronger growth momentum.
Despite an increase in the price of copra-a critical raw material for hair oil production-MARICO effectively managed its COGS, supported by the non-hair oil segment, which has better margins. This strategic focus, coupled with solid top-line growth, led to an improvement of 100.7 bps YoY in operating profit margin, reaching 42.2%.
BRAC EPL also said MARICO reported a net finance income of Tk16 crore in Q3'25. The company's 9M'25 investments reached Tk 6.9 Bn (-8.5% YoY). Although details are unavailable, we understand that better G-SEC yield and FX gain have aided the finance income. This, in turn, has resulted in an NPAT margin of 34.6%.
Stock market insiders expect MARICO to continue outperforming industry peers, thanks to its excellent market positioning, efficient management, group focus, and strong distribution network. In case of further stability in copra price, it could help keep margins on track in the upcoming quarters. In addition, the company has started its 3rd manufacturing unit at Mirsarai Special Economic Zone from July 04, 2023. They expect a marginal contribution from this plant in this fiscal year.
The firm is largely dependent on imported raw materials such as Copra and Light Liquid Paraffin for the production of its PCNO and VAHO products. Incorporated in 1999, Marico Bangladesh started its operations in 2000 and got listed on the stock exchanges in 2009.
Starting the journey with a single product - Parachute Coconut Oil - the beauty and wellness brand over the last decade invested heavily in diversifying its brand portfolio.
The company now touches the lives of one out of every two Bangladeshis with a wide array of brands in various categories, including hair nourishment, edible oil, and male grooming, through a strong distribution network that reaches more than 790,000 outlets throughout the country, according to data available on the company's website.
Marico shares closed at Tk 2,321.80 per share on the Dhaka stock exchange on Tuesday.
