Marico earns record annual profit on hair oil sales growth

Despite the turmoil and uncertainties in the political landscape, Marico Bangladesh has reported a record profit and revenue for the year ended in March this year.

The revenue of the India-based multinational company grew 12.3 per cent year-on-year to Tk 16.31 billion while profit jumped 28.2 per cent year-on-year to Tk 5.91 billion in the year to March.

"The growth was driven by our flagship brand Parachute coconut oil and the launch of innovative value added products in the hair care and skin care categories," said Saugata Gupta, chairman of Marico Bangladesh, in its latest annual report.

The growth is significant for a listed firm at this moment against the backdrop of the prevailing challenging economic environment and high inflation, due to which many local companies have been struggling to survive.

Marico Bangladesh's compound annual growth rates (CAGR) of revenue and profit between FY21 and FY25 are 7.76 per cent and 18.45 per cent respectively.

"Our flagship brand Parachute Advansed is not only a cherished household name but also holds a leading position in the hair oil category," said Mr Gupta, adding that the strengths have driven sustained profit growth, reinforcing Marico's position as a trusted leader in the fast moving consumer goods sector.

Marico launched a dozen of new products in its latest financial year to March, including Vitamin E hair oil from Parachute Advansed, and a soap for babies.

Building on the trust and equity of its flagship brands Parachute, Saffola, Parachute Advansed and Nihar, Marico continued to deepen consumer engagement and expand its presence across consumer segments, according to the report.

Marico started its journey in Bangladesh 25 years ago with its flagship brand Parachute coconut oil. Currently, it has 47 brands across 10 categories.

However, the top selling product -- coconut oil of Parachute brand, Parachute -- remains the largest contributor to the revenue growth, having helped the company earn 58 per cent of total revenue for the latest year.

Delivering world-class quality products, strengthening brand equity and sustaining a resilient distribution network have been fundamental in driving Marico's business growth, the company claims.

Marico says 99.9 percent of the product portfolio is locally manufactured, while some products also find their way to markets beyond Bangladesh, such as Nepal, India, Middle East, Egypt and Vietnam.

Marico Bangladesh's domestic sales grew 12 percent year-on-year while exports jumped 136 per cent year-on-year in the year to March this year.

Currently, Marico operates in 26 countries across the emerging markets of Asia and Africa. Bangladesh is the most profitable unit of Marico's international business.

"Efficient management of cost of sales and proper control of administrative expenses helped to deliver significant growth in net profit," said Sumitava Basu, managing director of Marico Bangladesh.

Marico Bangladesh has declared a total 3840 per cent cash dividend for the year 2025. This is the second highest dividend declared by any listed company in the history of Bangladesh's equity market.

"Our commitment to maximizing shareholder value is reflected in a total dividend of 3840 per cent for the year," said Mr Gupta.

Due to the record dividend declaration, the company's dividend yield is set to reach an all-time high of 15.42 per cent for the year through March this year.

Marico Bangladesh's EBITDA (earnings before interest, taxes, depreciation and amortization) is 48.17 per cent while profit margin reached 36.21 per cent for the year through March.

EBITDA is a measure of profitability.

We aim to continue our sales and profit growth through our proactive management of the internal and external factors and are proud ambassadors of 'Made in Bangladesh' and also contribute to the country's exports," said the managing director.

Marico Bangladesh also contributed Tk 6.79 billion to the national exchequer as duties and taxes, reflecting the ever-growing importance of the company in the national development of Bangladesh, the company said.

Marico, which sells beauty and wellness products, started operations in Bangladesh in 2000 with its flagship brand "Parachute" coconut oil.

Since then, the company has expanded to more than 47 brands in 10 categories, including hair care, skincare, baby-care, hygiene and food products.

Marico, which operates two plants in Gazipur, started production at its third factory in July 2023 to meet the growing demand for coconut oil and food products.

It set up its third manufacturing unit at the National Special Economic Zone (NSEZ) at Mirsarai in Chattogram.

"Mirsarai factory has achieved an impressive milestone this year with a significant increase in production of Parachute Advanced Beli," said Mr Basu.

The production has seen an approximate growth of 55 per cent. "This remarkable rise highlights the factory's continuous growth and improved efficiency."

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