Earnings Report /
Bangladesh

Marico Bangladesh: MARICO Q3 FY23 Earnings Update

  • MBL posted c13% yoy profit growth in Q3 FY23. The earnings growth was mainly driven by 7.0% yoy revenue growth.

  • 7.0% yoy revenue growth reported in Q3 FY23. In 9M FY23, Marico posted 8.2% top-line revenue growth.

  • Substantial growth in Non-Operating revenue was a major contributer into 13.1% earnings growth in this quarter.

Shopnil Paul
Shopnil Paul

Research Associate

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IDLC Securities
25 January 2023
Published byIDLC Securities

MBL posted c13% yoy profit growth in Q3 FY23. The earnings growth was mainly driven by 7.0% yoy revenue growth. Substantial rise in Non-Operating revenue also contributed to the bottom-line growth.

7.0% yoy revenue growth reported in Q3 FY23. In 9M FY23, Marico posted 8.2% top-line revenue growth. The single-digit revenue growth in 9M FY23 is likely to be a result of high inflationary pressure.

296 bps YoY dent in the gross margin was recorded in Q3 FY23. High commodity prices and currency depreciation increased raw material procurement costs. But we expect the margin to increase from the next quarter as copra price is falling globally since May 2022.

281bps improvement in Opex to Sales ratio offsets the impact of the gross margin contraction. Against the 296 bps margin contraction, MBL’s opex-tosales ratio improved by 281 bps. It cut marketing, selling & distribution expenses by c29% YoY which resulted in c10% decline in operating expenses.

Substantial growth in Non-Operating revenue. Non-operating income contributed BDT 95.3 mn in Q3 FY’23 against BDT 26.7 mn in Q3 FY’22. Because of this substantial growth in Non-Operating revenue, earnings grew at 13.1% rate despite the operating revenue growth was 6.6%.