Mumbai: The stock of fast-moving consumer goods (FMCG) company Marico Ltd slumped nearly 5 per cent on Tuesday amid the political unrest in Bangladesh as the neighbouring country contributes almost 11 per cent of its consolidated business.
The company’s stock was trading around Rs 640 a piece (down 4.9 per cent) during the day trading.
Marico Bangladesh Ltd clicked Rs 1,103 crore in revenue in the last fiscal (FY24), making up 11 per cent of Marico’s consolidated revenue. For international business on a standalone basis, Bangladesh contributes around 44 per cent of the total revenue.
Marico’s net profit in the April-June quarter went up 8.7 per cent (year-on-year) to Rs 474 crore.
The shares have gone up 12.89 per cent in the last 12 months and 17.78 per cent on a year-to-date (YTD) basis.
In its April-June quarter result, the company said it aims to bring down the contribution from Bangladesh to less than 40 per cent by the end of fiscal 2027.
In Q1 FY25, Bangladesh registered 10 per cent CCG (constant currency growth) as the business stayed resilient and sustained its momentum for Marico.
The company said that the international business has grown from strength to strength in the face of transient macroeconomic and currency devaluation headwinds in select regions.
“While Bangladesh and Vietnam have led from the front, the strong growth momentum in the MENA and South Africa businesses has visibly strengthened the broad-based construct and offers margin upside over the medium term,” Marico said in its quarterly results.
This resulted in visible geographical diversification in the overall international business, reflecting in the reducing revenue dependence on Bangladesh business.
The company said it will aim to maintain the double-digit constant currency growth momentum over the medium term.
The FMCG volume trends in India continued to exhibit gradual improvement on a 2-year CAGR basis, with the trajectory in rural areas bearing more promise, while urban was stable.
(IANS)
