Earnings Report /

Marico Bangladesh: FY20-21 – Annual earnings grew by 17.5%, meeting our expectations; Reiterate Buy

  • Annual EPS of BDT98.69 grew by c18% YoY

  • 4Q 20-21 earnings grew by c20%, generating EPS of BDT19.34

  • Annual dividend payment BDT90/share underperformed our expected dividend of BDT 95/share

Auneea Haque
Auneea Haque

Research Associate

IDLC Securities
28 April 2021
Published byIDLC Securities

In FY20-21, MBL BD reported EPS of BDT98.69 (NPAT BDT3,109mn), witnessing c18% YoY growth compared to BDT84.01 (NPAT BDT2,646mn) for the same period the previous year, meeting our expectations. In 4Q 20-21, EPS stood at BDT19.34 (NPAT BDT609mn) against BDT16.13 (NPAT BDT508mn) in 4Q 19-20, implying c20% YoY growth.

We believe the growth in earnings was attributed to year-on-year double-digit top-line growth, gross margin expansion, and lower opex/sales. Marico has launched several new products throughout the year which supported the strong revenue growth despite the pandemic outbreak.

MBL BD announced a dividend of BDT 90/share (c91% dividend payout) for FY20-21 against BDT 95/share (c113% dividend payout) in FY19-20, underperforming our expected dividend of BDT95/share (c97% payout).

We reiterate Buy with TP BDT2,316 (ETR 17.8%) for June 2022. Our current TP implies 18.9x 2022f PE (c12% 4Y forward earnings CAGR) and EV/Sales of 5.0x 2022f. With MBL currently trading at 20.8x LTM PE our TP offers an ETR of 17.8% with a dividend yield of 4.9%. We recommend Buy for MBL. 

Please note that detailed financials will be available when MBL BD publishes its annual report. We will provide further updates then.