Marico Bangladesh reports 25% profit growth, declares 450% interim cash dividend
In the July to September period, the company's profit stood at Tk146.54 crore, which was Tk116.89 crore in the same quarter of the previous year
Despite the country's businesses facing challenges in the July-September quarter due to political instability, India-based Marico Bangladesh posted a robust 25% profit growth for the period and announced an impressive 450% interim cash dividend.
In the July to September period, which is the second quarter as the company's financial year starts in April, Marico's profit stood at Tk146.54 crore, which was Tk116.89 crore in the same quarter of the previous year.
The company, selling products including coconut oil under the flagship brand Parachute, also bagged Tk404.81 crore in revenue – an 8% increase from the revenue in the same period of 2023.
In the April to September period of 2024, the company's revenue stood at Tk840.76 crore and net profit at Tk319 crore.
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The company's board has set 18 November as the record date to determine shareholder eligibility for the interim dividend.
Earlier, Marico Bangladesh distributed a 1,000% interim cash dividend for the first quarter of this fiscal year. This brings the total cash dividend to 1,450% for the first half of the current financial year, amounting to Tk456.75 crore.
A Marico official, requesting anonymity, told TBS, "The prompt decision-making of the efficient management did not allow any negative impact on the company's business."
Since October 2022, Marico's shares have been stuck at the floor price of Tk2,421 each at the Dhaka Stock Exchange (DSE). On Tuesday, 256 shares of the company were traded at this price at the DSE.
Marico started its business in Bangladesh back in 1999 with its flagship brand – Parachute Coconut Oil.
Since then, the company has transformed itself from a single brand to more than 20 brands in the personal care and food categories.
Marico Bangladesh was 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 a 90% stake, whereas general investors have only 2.03% shares. The remaining shares are held by institutions and foreign investors.
Its share closed at Tk2,206 on the Dhaka Stock Exchange on Thursday.
To grasp the market share, the company has been diversifying product portfolios and meeting the 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 set up a new plant in the Mirsarai Economic Zone.
