Marico minting the popularity of its Parachute Coconut Oil

Indian fast-moving consumer goods company Marico's profits soared 30 per cent to Tk 264 crore in the financial year that concluded in March as its flagship Parachute-branded coconut oil continues to win the hearts of Bangladeshi customers.

Subsequently, the Bangladesh subsidiary of the Mumbai-based company declared 950 per cent cash dividend for the year.

The company has been generous in sharing its spoils with its shareholders, announcing 450 per cent to 650 per cent in cash dividend since 2015. But the dividend for the just-concluded financial year is its highest since its listing on the Dhaka bourse in 2009.

In the 2019-20 financial year, Marico Bangladesh's revenue soared 11.7 per cent to Tk 979.59 crore, and Parachute Coconut Oil alone raked in Tk 636.30 crore, up 5.11 per cent year-on-year.

However, the company though is not hoping to coast on the popularity of the product indefinitely; it has been busy diversifying its product portfolio.

For instance, earlier in February, the company rolled out a male grooming line and a year earlier a baby product range.

Marico's value-added hair oil sales surged 25.23 per cent to Tk 262.34 crore and those of baby products, male grooming and skincare products 43 per cent to Tk 65.4 crore.

"Coupled with our quality offerings, we increased investment in advertising and promotion across portfolios that have contributed to the satisfactory growth in these segments," said Christabel Randolph, director for legal and corporate affairs of Marico Bangladesh.

The company's advertising, market research, communication, business promotions and other marketing costs were Tk 114.77 crore in the last financial year, up from Tk 77.37 crore a year earlier, according to the financial report.

The current coronavirus pandemic has affected consumption and it was reflected in the sales in March, the last month of the company's financial year, she said while replying to a query from The Daily Star.

The company's hair colour sales stood at Tk 5.84 crore in the 2019-20 financial year, up 5.2 per cent year-on-year. However, its edible oil sales dropped 9.36 per cent to Tk 9.68 crore.

Due to the coronavirus pandemic, consumers are now more conscious about hygiene and have a greater need for hygiene products in addition to daily consumer products, the company said.

"We expect the impact on the non-essential discretionary category of products like grooming and cosmetics as a result of this crisis."

Considering the change in consumer behaviour, last month the company launched Mediker SafeLife range of hand sanitiser and handwash with a "no profit" commitment for the first six months as a commitment to consumers.

The company initially faced challenges on account of disruptions to supply chain, logistics and movement of goods, it said.

"However, with excellent support from the commerce ministry, local administration and law enforcement agencies we were able to tide over the situation and continue the supply of essential products to the consumers."

Marico Bangladesh stocks traded at Tk 1,562 on March 25, the last trading before the bourses shut for the countrywide general shutdown to flatten the curve on coronavirus.