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Olympic Industries Limited posted a 13.1 per cent surge in net profit in the first quarter (July-September) of the fiscal year 2022-23, thanks to hefty export receipts coupled with the depreciation of the domestic currency against the dollar.
The publicly traded company logged a net profit of Tk 46.58 crore in July-September of the current fiscal, against the profit of Tk 41.18 crore in the same period last fiscal year.
Its earnings per share (EPS) stood at Tk 2.33 for this July-September from Tk 2.06 for July-September of the last fiscal.
According to the company’s recently published first quarterly financial statement, its export receipts jumped by about 900 per cent year-on-year in the latest quarter.
The ascending value of the dollar against the taka also played a pivotal role to swell up its export earnings, according to a filing posted on the website of the Dhaka Stock Exchange on Monday.
The biscuit manufacturer’s net operating cash flow per share (NOCFPS) stood at Tk 4.32 for July-September this year versus Tk 2.01 for July-September of 2021.
Its net asset value (NAV) per share stood at Tk 49.16 till September this year which was Tk 48.27 as on September 2021.
The company said its NOCFPS increased in the latest quarter mainly due to a high amount of cash generated meantime, the DSE filing read.
It also witnessed a 94 per cent year-on-year rise in cash incentives received against exports in Q1 of FY23.
In Q1 this fiscal year, it received Tk 1.74 crore in cash incentives against the amount of Tk 89 lakh in the same period last fiscal year.
In July-September this year, Olympic Industries Limited sold products worth Tk 680 crore in the domestic market versus the tally of Tk 492 crore in the same period last year.
Recently the company which is the country’s largest biscuit manufacturer and supplier announced to increase in its production capacity by investing more than Tk 26 crore alongside the existing facilities.
The expansion plans would be implemented by 2024.
Boosting the cartoon production, building the second baked snacks processing line, marketing chocolates under its brand, and the construction of facilities was detailed in its expansion vision, according to a DSE filing dated September 1 this year.
Olympic Industries Limited’s Company Secretary Nazimuddin told The Business Post that once the company implements its expansion plans, its earnings would rise further.
He, however, said the recent price hike in food raw materials coupled with the electricity supply shortage, forced them to limit their production operations.
The company is involved in the manufacturing and retailing of consumer goods, particularly biscuits, confectionery items, and batteries.
Energy Plus, Tip, and Nutty are the popular brands of the company. It is also the top biscuits exporter in Bangladesh with exports to 30 countries.
The company exports its products to the USA and many other European nations including UK, Greece, France, and Portugal.
It has a market capitalisation of Tk 2,367 crore, while Tk 723 crore is in surplus reserve.
Olympic shares were traded at Tk 120.1 per share on the trading floor of the DSE on Monday.
Earlier in November last year, the company had announced an investment worth Tk 25.65 crore to raise its production capacity.
Under that investment plan, it established a line for plain and custard cake production in its Narayanganj’s Kanchpur-based factory. It also spent Tk 6.49 crore on machinery imports.
