MARICO: 3QFY23 Earnings Update

Marico Bangladesh Limited (MBL BD) posts 13.1% YoY profit growth in 3QFY23 (October– December, 2022)

·         MBL BD’s posted  13.1% YoY profit growth in 3QFY23.

·         Revenue increased by 7.0% YoY in 3QFY23. However, GPM fell by ~300bps YoY to 49.7% due higher prices of raw materials in the international market.

·         Marketing, selling and distribution expenses has decreased by 28.8% YoY in the reporting quarter. On the other hand, administrative expenses increased by 13.4% YoY. Overall, EBIT margin reduced (22bps) less than GPM. MBL BD has been focused on maintaining margin amid higher raw materials price environment by controlling marketing expenses (decreased 22.8% YoY in 6MFY23) this year.

·         Net finance income has increased substantially by 356.9% YoY to BDT 90mn in 3QFY23. Effective tax rate decreased by 60bps YoY 22.9% in 3QFY23.

Net revenue (BDT mn)3,3423,57810,09510,923
Gross profit (BDT mn)1,7591,7775,5125,595
EBIT (BDT mn)1,1661,2403,6843,958
NPAT (BDT mn)8629742,8382,975
EPS (BDT)27.3530.9390.0894.45
BVPS (BDT)82.0484.8182.0484.81
Growth YoY    
Gross profit52.6%49.7%54.6%51.2%