Home ›› 27 Sep 2022 ›› Stock
The Russia-Ukraine war has appeared as a bigger blow to BD Thai Food and Beverage Limited, as the local company’s production costs jumped manifold owing to the soaring import costs of wheat and other commodities, hammering its revenue as well as the profit.
As much as 97 per cent of the company’s total revenue is generated from the sale of bakery items.
The company that got listed in the capital market on the first of January 2022 recently published its financial report for the third quarter (January-March) of the fiscal year 2021-22.
According to the financial data, the baker’s revenue in the third quarter of the FY22 stood at Tk19.83 crore, up 10.7 per cent from the figure of Tk 17.92 crore in the same period of the previous fiscal.
On contrary, the company had spent Tk 16.43 crore as production cost in the Q3, which was 35.7 per cent higher than the amount of Tk 12.11 crore in the same period of the previous year.
The baker in the first nine months of the FY22 registered a 22.5 per cent rise in revenue on a year-on-year basis, while its production cost surged by 22.1 per cent.
So, it is apparent that the company’s production cost jumped further in the January-March period, as the Russia-Ukraine war broke out at that time.
“The surge in wheat and other commodities prices in the global market, caused by the war severely hampered our revenue, as increased costs were increasingly eating up the revenue, sending down the profit as well,” Company Secretary Habibur Rahman told The Business Post.
However, the company’s stock price jumped abnormally on the Dhaka Stock Exchange (DSE) trading floor.
The company’s share price rose to TK 51.7 from TK 35.7 in the last 13 trading sessions, which was 44 per cent higher.
On Sunday, the authorities of the DSE served the company a show-cause notice asking about the reason behind that abnormal rise in its share price.
In response, the company said it did not have any undisclosed information that could stimulate its share price rise.
Apart from bakery products, the company also manufactures juices and soft drinks.
In the Q3 of FY22, the company’s net profit rose by 7.7 per cent to Tk 1.12 crore on a year-on-year basis.
“Our profit had been healthier in the Q3 if the production costs had not jumped at an increasingly accelerated pace in that time,” said Company Secretary Habibur Rahman.
