Gemini Sea Food’s profit almost doubles in H1 FY23

Gemini Sea Food, a seafood manufacturer, reported Tk 4.33 crore in net profit during the July-December period of the current fiscal year, which was almost double than that of the same period last fiscal.

The cent per cent shrimp exporter, according to its latest financial report, witnessed a thriving profit in H1 of the fiscal year 2022-23 after prices of raw materials cooled down in the global market.

The listed company posted a net profit of Tk 2.40 in H1 of FY22 and a net loss of Tk 3.72 crore in the same half of the previous fiscal.

Although the seafood manufacturer’s first half yearly revenue dropped year-on-year in FY23 its H1 profit surged by 80 per cent this fiscal year on a year-on-year basis due mainly to the decrease in shrimps’ production cost.

The company spent Tk 28.65 crore in purchasing raw materials in the first six months of FY23, compared to Tk 40.36 crore in the same period last year, as per the company’s H1 financial report.

Commenting on the issue, AFM Nazrul Islam, company secretary of Gemini Sea Food told The Business Post, “The shrimps we export are of very high quality. And from time to time, the shrimps are exported according to the supply orders of importers. As a result, the production cost varies based on the changing market situation.”

Gemini Sea Food’s total revenue in the July-December period of FY23 stood at Tk 40.50 crore of which Tk 38.35 crore was generated from export receipts, and the remnant Tk 2.15 crore was given by the governmental as export subsidy.

The growing exports coupled with the lower production cost helped the company log a good profit, the company stated in its H1 financial report.

The company secretary stated, “Our income will increase further in the next financial year because we have already signed an agreement with the German frozen food company– LENK. Under this agreement, both parties have agreed to work hand in hand to broaden their business scopes and penetrate into global non-traditional markets.”

“The deal will result in a substantial increase of around Tk 50 crore in annual revenue for Gemini Sea Food once it enters non-conventional markets,” Nazrul Islam continued.

The company also plans to raise its paid-up capital to more than Tk 30 crore from the existing figure of Tk 6.10 crore to comply with the securities regulations.

The company secretary said a 30 per cent bonus dividend and a 10 per cent cash dividend were paid to its shareholders for FY22.

Its paid-up capital was increased by Tk 1.40 crore through the bonus dividend, and it is also planning to raise the paid-up capital by issuing the bonus dividend for FY23, subject to regulatory approval.

Gemini Sea Food’s export turnover stood at Tk 72.65 crore in FY22 of which 58 per cent came from the European markets, while 18 per cent from Canada, 13 per cent from the US, and 11 per cent from Japan, according its latest annual report.

The company accounted for a 56 per cent of the country’s total shrimp exports in FY22.

Its earnings per share rose to Tk 7.10 for the July–December half of 2022 against Tk 3.94 for the same period of the previous year.

The firm got listed on the Dhaka Stock Exchange in 1985.

Gemini Sea Food shares rose 12.10 per cent to Tk 528.2 per shares on the Dhaka Stock Exchange last week, making it the week’s fourth biggest gainer.