Marico profits slip amid volatility

The continuing political volatility is taking a heavy toll on the sales of Marico Bangladesh, as the violence is creating obstacles in sending its products to different parts of the country, said Aditya Shome, managing director of the company.

“The political turmoil is hurting our distribution network. The movement of goods to remote places has definitely become a challenge with certain pockets in the country being completely inaccessible.”

violance BDThe fresh wave of political chaos since January 5 has also made it difficult for the company to predict its future business performance, Shome said, the Daily Star reports.

Moreover, the company marked an 18.35 percent year-on-year fall in profits in the three months to December last year, as it invested Tk 22.09 crore behind its product distribution network and marketing during the period, he said.

The fast-moving consumer goods producer’s revenue grew 16 percent to Tk 157 crore year-on-year in the period, and it recorded Tk 644 crore in turnover in the year ending March 2014.

The company has also forayed into various business segments in the last year with the launch of hair oil brands ‘Nihar Shanti’ and ‘Parachute Advansed Extra Care’.

“The consumer responses for both these brands have been very encouraging and in line with our business expectations.” The company launched deodorants under the name of Set Wet, which became a huge hit in Bangladesh, he said.

“We had recently test-launched the winter range of Parachute Advansed Body Lotion. The initial response has been very positive,” Shome said.

The flagship brand of the company is Parachute, he said.

Parachute was adjudged to be the most trusted brand in 2012 out of 1,796 brands across categories of consumer durables, non-durable products and services operating in Bangladesh by Bangladesh Brand Forum and Nielsen.

In the October-December 2014, the company’s earnings per share stood at Tk 8.99, down from Tk 11.1 a year ago. The share price of the company closed at Tk 1,109.7 yesterday at the Dhaka Stock Exchange.

Last year, Marico Bangladesh offered 900 percent cash dividend in total, the highest among all listed companies, including the 500 percent special dividend the multinational firm handed to mark its 12th year in operation in the country.