Financial Daily from THE HINDU group of publications
Friday, Apr 19, 2002
Financial Daily from THE HINDU group of publications Friday, Apr 19, 2002 |
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Performance Corporate - Bonus Announcements Marico moots 1:1 bonus Our Bureau
MUMBAI, April 18 THE Marico Industries board has recommended a bonus issue of shares in the ratio of 1:1. For the year ended March 31, 2002, the FMCG company has reported a nine per cent increase in net profit at Rs 50.1 crore (Rs 45.8 crore). The board has recommended a final dividend of Rs 5 per share, taking the total dividend to Rs 14. Turnover edged up by 3.7 per cent to Rs 695.7 crore (Rs 670.7 crore), mainly aided by the company's new products initiatives. Marico has targeted a top-line growth of 10-12 per cent and a bottom-line growth of 15-18 per cent during 2002-003 fiscal. The company's top-line has been growing consistently for the last six quarters and its bottom-line for the last 10 quarters. While acknowledging that turnover growth during this fiscal had been marginal, Mr. Harsh Mariwala, Chairman and Managing Director, said that the company would focus on new products. During the 2001-2002 fiscal, new products contributed Rs 80 crore to the top-line. These included Parachute Amla, Parachute Jasmine and Saffola Kardi-Corn Blend. "We aim to double share in two years in new products,'' Mr. Milind Sarwate, Chief Financial Officer, Marico, said. Marico has been able to garner a market share of 3.3 per cent in Saffola Kardi-Corn Blend in 18 months of its launch. Apart from growing the new products portfolio, the company has also been reducing its dependence on flagship brand Parachute. Dependence on non-Parachute brands is up at 62 per cent. Mr. Sarwate said the company had been able to develop its top-line despite bringing down consumer offers to 21 per cent of its advertising and promotional spend as compared to 36 per cent in the earlier fiscal. Operating margins improved to 8.7 per cent from 7.6 per cent. Advertisement and sales promotion spend dipped to Rs 59.1 crore from Rs 82 crore. The Parachute brand improved its market share to 55.4 per cent from 54.5 per cent in the earlier year. During the year, hair oil franchise rose to 11.6 per cent from 7.2 per cent. According to Mr. Mariwala, overseas sale of its branded products contributed seven per cent to the turnover.
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