Earnings Report /
Bangladesh

Marico Bangladesh: Q2'23: 8.5% yoy NPAT growth due to 8.5% revenue growth, improved opex to sales

  • 8.5% yoy earnings growth in Q2 FY23. EPS in Q2 FY23 stood at BDT 30.85 against BDT 28.45 in Q2 FY22.

  • The top-line revenue of the company posted 8.5% yoy growth in Q2 FY23.

  • 271 bps margin contraction has been offset by 356bps improvement in the opex to sales ratio.

Shopnil Paul
Shopnil Paul

Research Associate

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IDLC Securities
3 November 2022
Published byIDLC Securities
  • 8.5% yoy earnings growth in Q2 FY23. EPS in Q2 FY23 stood at BDT 30.85 against BDT 28.45 in Q2 FY22. In the 6M FY23, Marico reported EPS BDT 63.52 against BDT 62.73 in 6m FY22, implying a flat 1.3% growth.

  • The top-line revenue of the company posted 8.5% yoy growth in Q2 FY23. Given the defensive nature of the industry, Marico is partly shielded from the effect of squeezing purchasing power of the consumers.

  • 271 bps margin contraction has been offset by 356bps improvement in the opex to sales ratio. It led to a 85bps increase in operating profit margin. The austerity measure to cut down administrative expenses helped bring the balance.

    Please note that the price of Copra – the key ingredient to manufacture hair oil - is rapidly dropping in the international market. We may see the positive impact of the price drop on MBL’s gross margin the coming quarters.

  • Marico encashed BDT 194mn fixed deposit to pay out dividends in the quarter that declined the net finance income. It reported a net finance expense of c6mn in Q2 FY23 against a net finance income of c27mn in Q2 FY22.