Olympic Industries profits fall to lowest level in seven years due to high production costs

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It plans to invest Tk 247.5 million to set up new instant noodle lines







Olympic Industries Limited’s net profit fell to nearly Tka 1.21 billion in FY 2021-22, the lowest in seven years, due to rising production costs and rising costs. raw material prices.

The country’s leading biscuit maker reported an after-tax profit of 1.21 billion taka for the financial year ended June 30, 2022, down 41% from the net profit of 2.04 billion taka. last year.

As a result, its earnings per share (EPS) fell to Tk 6.03 in fiscal year 2021-22 from Tk 10.19 in the last fiscal year.

This year’s net profit was the lowest in seven years since the 2015-2016 financial year, when the company’s net profit was 1.62 billion taka, according to the company’s financial reports. In the financial year 2014-15, the company’s net profit was Tk 1.09 billion,

The company’s net profit was Tk 2.02 billion in FY 2019-20, Tk 1.87 billion in FY 2018-19, Tk 1.79 billion in in FY 2017-18 and Tk 1.64 billion in FY 2016-17.

At its meeting on Thursday, the board of directors recommended a cash dividend of 45% for the year ended June 30, 2022. In 2021, it paid a cash dividend of 54%.

The council also decided to invest 247.5 million taka to set up a second instant noodle line to expand its annual production capacity from 8,316 tons to 19,008 tons.

The company’s sales, however, increased by 19% to 21.44 billion taka in the 2021-22 financial year, from 18.03 billion taka in the previous financial year.

The cost of raw materials, including oil, sugar and flour, rose significantly, but the price of finished products remained almost the same, which ultimately impacted profits, an official said. company, on condition of anonymity.

Prices of sugar and flour rose in the international market and so there was no way to avoid the price hike, he said.

As a result, the production cost of biscuits and confectionery items jumped 30% to Tka 16.52 billion in FY 2021-22 from Taka 12.75 billion in the same period last year. last year.

The company’s profitability declined significantly due to the Russian-Ukrainian war, continued currency volatility, rising commodity prices, high inflation and declining real income of ordinary people, a the company said in a statement.

Net operating cash flow per share (NOCFPS) was 3.51 Tk for the 2021-22 financial year compared to 9.34 Tk for the 2020-21 financial year.

The net asset value (NAV) per share was Tk 46.84 as of June 30, 2022, which was Tk 46.21 as of June 30, 2021.

On Thursday, Olympic Industries’ share price rose 2.08% to close at 115.70 Tk on the Dhaka Stock Exchange (DSE).

Its paid-up capital is Tk 1.99 billion, its authorized capital is Tk 2.0 billion and the total number of shares is 199.94 million.

Sponsor-directors hold 37.31% of the capital, institutes 22.96%, foreigners 20.54% and the general public 19.16% as of September 30, 2022, according to data from the DSE.

The company has grown at around 15% per year over the past few years.

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