Indian FMCG posts double-digit sales and profit growth in Oct-Dec
Marico, the maker of the much-loved Parachute Coconut Oil, saw its profit soar 15.3 per cent year-on-year to Tk 71.4 crore between October and December of last year, benefiting from a faster-than-expected recovery in consumer sentiment with the reopening of the economy from June.
The quarter’s earnings take the Indian fast-moving consumer goods company’s profits in the first nine months of its 2020-21 financial year, which run from April to March, to Tk 250 crore, up 16.9 per cent from a year earlier.
Marico Bangladesh -- whose portfolio comprises largely of personal grooming products ranging from hair oil to hair dye, body lotion to baby care, men’s toiletries to cooking oil -- logged in sales of about Tk 877 crore between April and December, up 14 per cent from a year earlier.
The strong performance amid the pandemic comes as the Bangladesh subsidiary of the Mumbai-based company had its eye on the ball at all times: given the heightened hand hygiene practice inflicted by the public health crisis, which firmly took root in March, the company rolled out a hand sanitiser and a hand wash earlier in April in record time.
Then in June, it supplemented its hygiene range, called the MedikerSafeLife, by introducing a cleaning solution that removes all the germs, bacteria, chemicals, waxes and soil present on the surface of fruits and vegetables without leaving any residue, aftertaste or smell.
In December, as part of its efforts to cut down on its dependency on the Parachute Coconut Oil for its earnings, Marico added two new products to its baby care range.
The new products -- a face cream and rash cream -- takes the number of products under Marico’s babycare line Parachute Just for Baby, which was launched in February 2019, to seven.
It also rolled out its 100% Pure Saffola Honey in the Bangladesh market last month.
But it was the value-added hair oils, particularly Parachute Advansed Beliphool, Parachute Advansed Extra Care and Parachute Advansed Aloe Vera, that drove the growth in sales, said Christabel Randolph, director of Legal and Corporate Affairs of Marico Bangladesh, which account for 49 per cent of its parent company’s international business.
New portfolios like Parachute Just For Baby range of baby care products, Parachute SkinPure range of skincare products and Parachute Naturale range of shampoos also contributed to the top line.
“The baby care franchise of Marico continues to build momentum,” she said.
The company logged in sales of Tk 285 crore in its third quarter, up 16.2 per cent year-on-year, which is in line with its parent company.
Marico India said it registered double-digit sales growth during October and December. The company is yet to report its third-quarter earnings.
“With the economy showing strong signs of recovery and the drive for vaccinations, the company is hopeful of continuing to deliver profit growth for its shareholders,” Randolph added.
Anticipating the surge in future demand for its products, in October Marico announced its plan to invest Tk 227 crore to set up a new plant in the Mirsarai Economic Zone to supplant its existing production facilities in Gazipur and other manufacturing contracts.
Market too has taken note of Marico’s great run amid the pandemic.
Shares of Marico, which was listed on the Dhaka Stock Exchange in 2009, gained about 31.2 per cent since March. Yesterday, shares closed at Tk 2,158.1, down 0.1 per cent from the previous day.
The company declared a 200 per cent interim cash dividend based on the performance of the first nine months of its 2020-21 financial year.