* EPS up by c29% to BDT 42.2. It exceeds expectations by c5%. * Sales up by c9% yoy driven by price hike. Inflation and price hike put pressure on volume sales. Once inflationary impact moderates, growth to reach double digits. * Gross margin rose 604 bps yoy driven by 20% cheaper copra prices. * Marico didn’t declare interim dividend. Dividend payout likely to increase when austerity measures relax. Meanwhile, cash balance rose. Marico will enjoy more interest income on thi...
We reiterate BUY recommendation for Marico Bangladesh at a target price of BDT 3,203, which implies an ETR of 36.0% inclusive of a price return of 32.3%. Key Takeaways * Strong historical results driven by new product launches and margin expansion. MARICO had c. 13% sales CAGR and c. 19% earnings CAGR in the past 5 years. Marico’s consistent product launch is the main driver behind its double digit historical revenue growth. Its brand portfolio grew to 42 brands in 2022 from 24 brands in 20...
* The cumulative profits of Multinational Companies (MNCs), excluding BERGERPBL, increased by c5% yoy in Jan-Mar 2023. * Consumer staple companies experienced continued growth, performing well during the quarter: * MARICO’s profit grew c. 25% this quarter because of profitability improvement driven by lower copra price and opex management * RECKITTBEN resumed topline growth and generated strong earnings growth by trimming operating expenses * All construction companies ...
* Earnings rose c25% yoy in Q4 FY23. Earnings stood at BDT 897 mn (BDT 28.5) in Q4 FY23 against BDT 716 mn (BDT 22.7) in Q4 FY22. This rise was mainly driven by c9% revenue growth, 74 bps gross margin rise and 316 bps opex to sales decline. In FY23, earnings stood at BDT 3,872 mn against BDT 3,554 mn in FY22, implying c9% yoy growth. * Revenue rose c9% yoy in Q4 FY23. Revenue stood at BDT 3,212 mn in Q4 FY23 against BDT 2,937 mn in Q4 FY22. In FY23, revenue stood at BDT 14,136 mn agains...
Marico Bangladesh Limited (MBL) is one of the leading Fast Moving Consumer Goods (FMCG) companies operating in Bangladesh. Marico Bangladesh Limited owns a multi brand product portfolio across haircare, skincare, baby care, male grooming, hygiene and food categories. We have conducted a valuation of MBL using discounted cash flow methods and relative valuation models. We are assigning “Marketweight” rating on MBL based on our Target Price of BDT 2,531. Our target price is forecasted to yield 8.6...
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 de...
* 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...
Marico Bangladesh Limited (MBL) is a multinational fast-moving consumer goods (FMCG) company that manufactures and markets consumer products under the brand names Parachute, Nihar, Saffola, Hair Code, Livon, Set-Wet, Bio-Oil, and Studio-X. It has two manufacturing plants in Gazipur with a third plant under construction. The company carries out its own distribution through four depots located in Gazipur, Chattogram, Bogura, and Jashore. It also has an integrated filling unit at Padma Limited and ...
2Q 21/22 revenue stood at BDT3,408.6mn against BDT2,907.9mn in the same quarter of the previous year, implying c17% YoY growth. As per our expectations, MBL maintained a double-digit top-line growth led by high growth in VAHO and baby care categories. Moreover, the newer additions of MBL such as Saffola Honey within food category, Face cream & Rash cream within Baby care category boosted sales. In the first six months of 21/22, revenue increased by c14% YoY to BDT6,752.6mn against BDT5,919.6m...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
1Q 21/22 revenue stood at BDT3,344.0mn against BDT3,011.7mn in the same quarter of the previous year, implying c11% YoY growth. As per our expectations, MBL maintained a double-digit top-line growth even during a quarter full of lockdowns and shutdowns. This can be partially attributed to MBL’s addition of new brands which boosted sales. MBL introduced new product categories including Hygiene, Hair cleaning, and also added new products to existing categories such as baby care, skin care, male...
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 product...
Revenue grew by c16% yoy to BDT2,850.0mn in 3Q 20/21, surpassing our expectations by c3%. MBL’s continuous effort to diversify its product portfolio has been paying off. Through the first nine months into FY21, MBL has launched two new brands Mediker SafeLife and Parachute Naturale Shampoo with three products under each brand. Moreover, MBL added four products to existing brands - ‘Saffola Honey’ under brand Saffola, ‘Baby Face cream’ and ‘Baby Rash cream’ under brand Parachute Just for Baby ...
MBL reported 2Q 20/21 NPAT of BDT 789mn (EPS: BDT25.03), implying c18% yoy growth against NPAT of BDT669mn (EPS: BDT21.24) in 2Q 19/20, surpassing our expectations as top line growth of c17% yoy translated into bottom-line. MBL’s H1 20/21 NPAT grew by c18% to BDT1,785mn against BDT1,518mn in the same period previous year. As the earnings growth beat our expectations, we have increased our NPAT growth forecast to c15% yoy from c14% yoy for FY21. Revenue increased by c17% yoy to BDT2,907.9mn in...
MBL reported 1Q 20/21 NPAT of BDT 997mn (EPS: BDT31.64) implying c17% yoy growth against NPAT of BDT849mn (EPS: BDT26.95) in 1Q 19/20, surpassing our expectations. c10% yoy revenue growth, c138bps yoy gross profit margin expansion and lower opex as a percentage of sales (-194bps yoy) boosted earnings even during pandemic. Revenue increased to BDT3,012mn (+10% yoy) in 1Q 20/21 against BDT 2,746mn in the same quarter previous year, beating our expectations. It is very commendable of MBL to be a...
No more general holiday from 31 May On May 31, 2020, Bangladesh will mark the end of 66-day long ‘General Holiday’ (38 days lockdowns, 20 weekends, and 8 public holidays) as the economic activities resume on a ‘limited scale’. For the next 15 days, all private and public offices and factories are allowed to remain open, complying to the health rules, from 6am to 4pm. However, people are requested to stay home from 8pm to 6am without emergency needs. The stock market was also closed for t...
The long ‘Holiday’ hits the season of the largest retail sales. Bangladesh identified the first Covid-19 patient on 8 March and has reported 25,121 confirmed cases, 370 deaths, and 4,993 recoveries till 19th May 2020. Bangladesh is set to experience a 66-day long ‘holiday’ till 30th May, comprising of 38 days of general holiday (i.e. lockdowns), 20 weekends, and 8 public holidays. The supply-side experienced distribution challenges from the law enforcement agency during the first two wee...
Annual EPS of BDT84.01 underperforms our expectations by c6%.FY19-20 EPS increased by c31% yoy from BDT64.23 in FY 18-19. MBL’s earnings grew by only c9% in Q4 FY 19-20, generating EPS of BDT16.15 while earnings in the first 9 months of FY 19-20 grew by c37% yoy. After five quarters of generating double-digit bottom line growth, the company generated single-digit bottom line growth in Q4 FY 19-20. Dividend payout of 113% surpassed our expectations. MBL declared BDT95 dividend per share for FY....
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