Marico to pay record annual dividend, driving yield up to over 15pc

Marico Bangladesh has declared a 1,950 per cent final cash dividend for January-March this year, with which it is going to pay record cash dividends of 3,840 per cent for its latest financial year.

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.

The India-based consumer goods multinational company, whose financial year runs from April to March, already paid an 1,890 per cent interim cash dividend for the three quarters through December last year.

Marico's latest dividend declaration is the highest after Linde Bangladesh's 4,500 per cent cash dividends for 2024 in the history of the equity market.

Marico's annual profit jumped 28 per cent year-on-year to Tk 5.91 billion for the year ended in March this year, driven by higher sales even amid the erosion of people's purchasing power due to inflationary pressure.

Subsequently, earnings per share (EPS) stood at Tk 187.49 in 2025 from Tk 146.23 the previous year, according to its audited financial statements published on Tuesday.

"Profit increased mainly due to increased revenue, improvement of gross profit margin and higher net finance income," said the company in its earnings note.

The annual audited financial statement of the company was approved at a board meeting on Tuesday.

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

The number of outstanding shares is 31.5 million. So, Marico will pay Tk 12.10 billion in cash dividend in total for the year against a profit of Tk 5.91 billion.

That means Marico will provide an additional Tk 6.19 billion from its retained earnings that amounted to Tk 6.96 billion as of March this year.

Sponsor-directors of the company, however, will get most of the dividend amounts as they have a 90 per cent stake in Marico.

Marico did not explain why it is paying more than the profit earned.

Analysts attributed the sharp rise in dividend payouts to the improved foreign exchange reserves, allowing multinational companies to repatriate profits more smoothly than before.

The unprecedented dividend payout indicates that the dollar crisis eased and exchange rates became stable, said Akramul Alam, head of research at Royal Capital.

In the past two years, multinational companies faced problems in repatriating dividends due to the shortage of the greenback.

There is a matter of concern as well, tied to high dividends.

"When the reinvestment opportunity squeezes, the cash-surplus companies announce high dividends [to be paid to shareholders from retained earnings]," said Mr Alam.

What drives profit growth?

Marico, whose top selling product is coconut oil of Parachute brand, recorded a 12 per cent growth in sales to Tk 16.31 billion for the year ended in March 2025.

While coconut oil remains the largest contributor to revenue growth, value-added hair oil, beauty and health, and men's grooming segments have showcased strong growth momentum.

Increased net finance income boosted profits too, said the company in its earnings note.

The net finance income climbed more than 62 folds year-on-year to Tk 875 million in the year, supported by rising deposit rates. A decline in the prices of raw materials in the global market also helped the company's profit growth.

Meanwhile, the stock dropped 0.10 per cent to Tk 2,487.8 per share on Tuesday, the second most valued stock in the main market.

The company will hold an annual general meeting (AGM) on June 26. The record date for dividends is May 26.

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 42 brands in 10 categories, including hair care, skincare, baby-care, hygiene and food products.

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

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

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