Marico’s sales growth hits 7-year low

Sales grew for Indian consumer goods company Marico Bangladesh in the 12 months of fiscal year (FY) 2023-24, which ended on March 31 this year as per their books.

However, it represented the slowest pace of growth in seven years.

Sales grew 2.7 percent year-on-year to Tk 1,452 crore in FY24 compared to 8.44 percent in the preceding year.

A mid-level official of Marico confirmed the matter, reasoning that some customers might have opted for other brands.

The sales growth had not been impacted to such an extent even during the pandemic.

Marico, whose highest selling product is Parachute brand coconut oil, recorded sales growth of 15.20 percent, 15.4 percent, and 11.7 percent in the previous three years of FY22, FY21 and FY20 respectively.

The sales growth was above 12.2 percent and 13 percent in the years before that.

On the other hand, high inflation is also having an impacting on the company as it is not dealing with items which are basic commodities, the official added.

In the past year, inflation in the country stayed above 9 percent.

Musficul Haider, company secretary of Marico, said sales slowed due to the "current situation", without clarifying further.

Although the company's sales growth slowed, its profit grew 18.8 percent year-on-year to Tk 460 crore in FY24.

In the preceding year, it was 9 percent.

Thus, Marico Bangladesh, which manufactures almost all products locally, logged earnings per share (EPS) of Tk 146.23 in FY24 compared to Tk 122.93 in the preceding fiscal year.

Its net asset value per share stood at Tk 260 at the end of last fiscal year, compared to Tk 113 at the end of the preceding fiscal year.

Marico's board declared a cash dividend of 200 percent for FY24, the lowest since 2015.

Its net operating cash flow per share increased to Tk 195.25 in FY24 from Tk 171.23 in the preceding fiscal year.

The Mumbai-based company, which sells beauty and wellness products, started operations in Bangladesh in 2000 with its flagship brand "Parachute" coconut oil.

It made its debut on the Dhaka and Chittagong stock exchanges in 2009.

In the same year, the company launched Haircode Hair Dye, which quickly gained popularity and secured a market share of more than 15 percent in its first year, according to its website.

The company expanded its product portfolio in 2011 with the introduction of "Parachute Advanced Cooling Hair Oil".

Marico boasts an array of brands in various categories, including hair nourishment, edible oil and male grooming. Its other products include Saffola Active Edible Oil, Livon Silky Potion, Set Wet and Livon.

The company set up its bottling operations in Gazipur's Mouchak in 2002 and started running a copra oil crushing manufacturing unit in Bhabanipur in 2012.

Shares of Marico declined 3.03 percent from that on the day before to close at Tk 2,330 on the Dhaka Stock Exchange yesterday.