Marico minting the popularity of its Parachute Coconut Oil
Indian fast-moving consumer goods company Marico's profits soared 30 % 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 % cash dividend for the year.
The business has been generous in sharing its spoils using its shareholders, announcing 450 % to 650 % 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 2009.
In the 2019-20 financial year, Marico Bangladesh's earnings soared 11.7 % 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 business though isn't hoping to coast on the popularity of the merchandise indefinitely; it has been busy diversifying its product portfolio.
For instance, earlier in February, the business rolled out a male grooming line and a year earlier a baby product range.
Marico's value-added hair oil sales surged 25.23 % to Tk 262.34 crore and the ones of baby products, male grooming and skincare products 43 % to Tk 65.4 crore.
"In conjunction 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 within the last financial year, up from Tk 77.37 crore a year earlier, in line with the financial report.
The current coronavirus pandemic has influenced consumption and it had been reflected in the sales in March, the last month of the business'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.
As a result of coronavirus pandemic, individuals are now more conscious about hygiene and also have a greater need for hygiene products in addition to daily consumer products, the business said.
"We expect the effect on the non-essential discretionary group of products like grooming and cosmetics therefore of the crisis."
Taking into consideration the change in consumer behaviour, last month the business launched Mediker SafeLife selection of hand sanitiser and handwash with a "no profit" commitment for the first half a year as a committed action to consumers.
The company primarily faced challenges on account of disruptions to provide chain, logistics and movement of goods, it said.
"However, with excellent support from the commerce ministry, local administration and police agencies we could actually tide over the problem and continue the way to obtain essential products to the consumers."
Marico Bangladesh stocks traded at Tk 1,562 on March 25, the last trading prior to the bourses shut for the countrywide general shutdown to flatten the curve on coronavirus.
