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New investment pushes up Olympic’s revenue by Tk332cr

Jul-dec of FY23
Shakahawat Hossain Sumon
04 Feb 2023 00:02:54 | Update: 04 Feb 2023 00:05:03
New investment pushes up Olympic’s revenue by Tk332cr

Olympic Industries Limited’s investment strategy has brought hefty profit for the company in the first half of the current fiscal year 2022-23.

At a time when most other companies in the industry were counting losses, Olympic saw its revenue grow by Tk 332.17 crore compared to the same period last year, according to its financial statement for the July-December of FY23. 

The largest biscuit manufacturer and supplier in the country invested heavily during the period to maintain sales worth thousands of crores of taka in the domestic market. The strategy has paid off extremely well.

According to Olympic’s financial statement, the company increased investment in the manufacturing sector by 11,315 per cent compared to the same period last year, which resulted in increasing its sales in the domestic market by 32 per cent.

The biscuit maker’s net profit after tax rose 45 per cent from July to December period of the fiscal year, when its competitors struggled due to skyrocketing prices of the main raw materials for making biscuits, including flour, oil, sugar, and ancillary products.

Olympic Industries Company Secretary Nazimuddin told The Business Post that the new investment has been made due to the demand for biscuits in the country’s market. Several new lines of products have been added during the production phase. Those earnings helped boost profits this time around.

The company’s revenue in the first six months of FY23 stood at Tk 1367.35 crore, the highest in three years. Its revenue stood at Tk 1035.18 crore, Tk 932.92 crore and Tk 800.44 crore in the first halves of FY22, FY21 and FY20 respectively.

Majority of the company’s revenue comes from the domestic market, which earned the company Tk 1352.91 crore in the first half of FY23, compared to Tk 1022.52 crore in the same period last year. In the same period of FY21, sales in the domestic market were Tk 917.82 crore. According to company officials, the increased sales is a result of new investment.

According to the company’s financial statements, Olympic invested only TK 0.66 crore in the first half of FY22. In the same period of FY23, the amount of investment stood at TK 74.02 crore– the highest in three years.

The bulk of the new investment came through long-term bank loans, said the company, adding that its long-term debt increased by 15.68 per cent in the first six months of FY23 compared to the same period of FY22.

The company had long-term debt of Tk 19.03 crore in the first six months of FY23, compared to Tk 16.45 crore in the same period of the previous year.

During the same period, the company’s cost of goods sold increased by 30% compared to the same time of the previous fiscal.

The company said its cost of goods sold increased significantly due to a sharp increase in the cost of materials, especially wheat flour, sugar and
edible oil.

In the July- December quarter of FY23, the company’s EPS rose to Tk 5.26 from Tk 3.61, and its profit grew to Tk 105.11 crore from Tk 72.11 crore in the same time of the previous fiscal.

In FY22, the company sold 129,515.18 metric tonnes of biscuits, confectionery, bakery and snacks products, compared to 117,742.90 metric tonnes a year ago, representing a year over year 10% increase in volume, according to the latest financial report.

Olympic Industries began operation in 1979 and currently has a wide variety of products. Energy Plus, Tip, and Nutty are some of the most widely sold and top brands of the company.

The company is also the pioneer in exporting biscuits from the country. At present, it is exporting to 30 countries, including USA, UK, Greece, France, Cyprus, Portugal, Ghana and Somalia.

In the first six months of FY23, the company earned TK 14.44 crore from exports, compared to TK 12.66 crore from the same sector in the same period last year.

It was listed on the Dhaka Stock Exchange in 1984 and Chittagong Stock Exchange in 1996. Its market capitalisation stands at Tk 2,571 crore and has Tk 736 crore in surplus reserve.

Its share price rose to Tk 143.90 on Thursdays in Dhaka bourse and moved between Tk 137.10 to Tk 144.90.

The Olympic Industries is owned by the influential industrialist Aziz Mohammad Bhai and other members of his. family. Aziz Mohammad, director of Olympic Industries, currently owns 3.10 crore shares of the company. 

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