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Marico Bangladesh Limited is amongst the top 3 FMCG MNC companies and a trusted brand in
beauty and wellness space in Bangladesh. The company touches the lives of 1 out of every 2
Bangladeshis with an array of brands in various categories, including hair nourishment, edible oil
and male grooming, through a strong distribution network that reaches more than 790,000 outlets
throughout the country. Its flagship brand, Parachute completed its journey of 12 successful
years in Bangladesh, with an ever-growing base of loyal consumers in October 2013. The brand
has been amongst top 10 most trusted brands continuously since 2009 and was awarded the title
of "Best Brand" by Bangladesh Brand Forum and Nielsen in 2011. Over the years, the company
has strengthened its brand portfolio, most notably through the expansion of its VAHO (Value
Added Hair Oil) segment. The VAHO segment now consists of several popular brands such
as Parachute Beliphool Lite, Parachute Advanced, Parachute Cooling Hair
Oil and Nihar Marico Bangladesh Limited also leads the powdered hair dye market with
the Hair Code brand. The company continued to diversify its portfolio with the introduction of
Saffola Active (a healthy edible oil) and Set Wet Deodorants in 2013. Our journey in Bangladesh
is as follow:
Incorporated in 1999
Started operations in 2000
Marico Bangladesh listed on Dhaka and Chittagong Stock Exchange in 2009
Launched Haircode Hair Dye in 2009 and achieved a market share of over 15% in its first
year
Lauched Parachute Advansed Cooling Hail Oil in 2011
Started bottling at Mouchak, near Gazipur in 2002 and copra crushing manufacturing in
Mahona, Bhavanipur in 2012
Launched Saffola Active Edible Oil, Livon Silky Potion, Set Wet Deodorants and Livon
Launched Nihar shanty Badam amla and Hair Code Keshkala in 2014
Industry Analysis
The FMCG (Fast Moving Consumer Goods) industry is one of the largest sectors in the economy
and creates employment for millions of people. FMCG includes personal care, house hold care,
packaged foods and beverages, tobacco etc. which are frequently purchased. The growth of
FMCG sector is commonly correlated with population and purchasing power of the consumers.
Currently, more than 60 companies are operating in FMCG business. The industry is an
emerging sector with vast local demand for its segregated products line. In Bangladesh, the
industry is mostly controlled by a small number of large Multinational Companies (MNCs). Low
capital requirements and simple manufacturing process lead the growing of local entrepreneurs
in the industry. Therefore, focus on branding, product differentiation, distribution and innovation
is of higher importance to build a loyal customer. Generally, local producers used to produce
beauty soap, laundry soap, detergent powder, coconut oil, and other cosmetics & toiletries
products. The FMCG market can be divided into two segments – urban and rural. The urban
segment is characterized by high penetration levels and high spending tendency of the urban
resident. The rural segment is mainly agrarian, with relatively lower levels of penetration and a
large unorganized sector. The FMCG industry caters to the needs of the consumers both in urban
and rural segments with a well-developed and efficient supply chain model. During the last
decades, growing of urban economy in the country helps to the growth of the sector. Increasing
purchasing power of the rural people together with perception of branded FMCG products in this
market have provided the Industry players an opportunity for driving growth.
Historical Analysis:
Comparative analysis for current financial year with immediate preceding five years
Particulars 2019 2018 2017 2016 2015
Turnover 876.82 781.47 691.61 706.59 734.88
Gross profit 429.55 358.51 320.58 318.10 330.62
Net profit 202.34 164.26 144.02 141.41 134.48
EPS 64.23 52.15 45.72 44.89 42.69
Net Assets 130.21 149.26 158.01 170.87 171.22
Net Cash Flows 38.31 27.92 16.68 48.05 19.20
The Company has been enjoying a persistent growth in yearly turnover during the tenure of five
years from 2015 to2019. The company has reported a revenue growth of 12.2% and profit
growth 23.2% compared to previous year. The Company has also reported EPS growth 23.2% as
compared to last year having strong net cash position.
Recent Performance:
During the year ended 31 March 2019, the company launched an array of new brands including
‘Parachute Petroleum Jelly’ and ‘Just for Baby’ oils, lotions and washes. These new products are
strengthening the diversity in the product portfolio and driving the innovation journey of the
Company. The new introductions are an indication of our efforts to play in the markets with a
right to win for Marico. Marico is fulfilling consumer needs in the spaces of nourishment,
grooming, beauty & wellness and foods categories. Marico reviews revenue performance of
different categories which have been disclosed with this annual report. Marico posted BDT 8768
million total revenue for the year ended 31 March 2019 with 12.2% growth compared to last
year. The growth was mainly driven by PCNO, VAHO and Saffola Edible Oil and partly offset
by Body Lotion.
Presented below is the table showing revenue status by Category and its growth:
*Year ended on 31 March and figures in BDT million
Cost of Sales: Revenue for the year ended 31 March 2019 has been increased by 12.2% whereas
Cost of Sales increased by 5.7% compare to last year. The leverage of fixed costs mainly
contributed to control the costs of sales compare to growth of sales. Also the raw material price
has slightly been increased compared to last year.
Gross Profit: Gross profit for the year ended 31 March 2019 was increased by 19.8% compared
to last year. Gross Profit for the year 2019 was 49.0% compared to last year 45.9%.
Net Profit: Net profit for the year ended 31 March 2019 was 23.1% compared to last year
21.0%. Net Profit has been increased by 23.2% compared to last year. Higher revenue growth,
increased finance income and lower operating expense have resulted the growth of net profit.
Recent News
Today, Marico is the third largest multinational consumer goods company in Bangladesh.
Recently, the company CEO stated that they plan to spend 1-2 percent of its profits on corporate
social responsibility.
Marico Bangladesh, one of the listed multinational companies, is going to invest Tk 29.40 crore
to increase the production capacity of its factories in Mouchak and Shirirchala, according to a
posting on the Dhaka Stock Exchange's website yesterday.
Competitor Analysis:
The peer companies within the FMCG industry includes Unilever Bangladesh, SQUARE
Toiletries Limited, Hemas Bangladesh, Moushumi Industries, Dabur Bangladesh, Emami
Bangladesh, Reckitt Benckiser among others. However only Reckitt Benckiser Bangladesh
Limited (RB) is listed with the stock exchanges among peer companies to enable an
industry benchmarking. RB reported a turnover growth of 6% and profit negatively grew by 13%
as reported in their latest financial statements.
Reckitt Benckiser Bangladesh
Marico Bangladesh Ltd. for the
LTD
period ending
for the period ending