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Gemini Sea Food, a frozen shrimp and fish exporter, witnessed a stellar surge in shrimp exports as the company’s export receipts grew by nigh 70 per cent year-on-year in the January–March quarter of the current fiscal year.
The listed company’s export receipts jumped to Tk 25.68 crore in the third quarter of the fiscal year 2022-23 from Tk 15.19 crore in the same quarter last fiscal.
The company’s overall revenue in the January–March quarter was Tk 26.09 crore, implying that the company’s total revenue is almost generated from export earnings.
Meanwhile, the shrimp exporter posted a net profit of Tk 5 crore in Q3 of the fiscal 2022-23, which was almost 24 times higher year-on-year.
Officials concerned at the company said both their revenue and profits shot up in the recently concluded quarter owing to an increase in demand and price of fresh water shrimps (Galda) in the global market.
The listed firm’s profit soared to Tk 5 crore in the current fiscal’s March quarter from Tk 0.2 crore in the corresponding quarter of the fiscal year 2021-22.
Its third quarterly profit was Tk 0.79 in the fiscal year 2020-21, and it had incurred a net loss of Tk 2.50 in Q3 of the fiscal year 2019-20.
As per its financial statement for the first three quarters of the current fiscal, the company reported a net profit of Tk 9.34 crore in in the July-March period of FY23, much higher that the profit of Tk 2.42 crore in the same period a year ago.
Detailing the reason for the increase in profit, the company said the demand for black tiger (BT) and cooking shrimp (CT) boomed in the European markets, helping it register a staggering profit rise.
The publicly traded company recently entered into a deal with Lenk Frozen Foods (Asia) Company, a leading German-based frozen food company, to boost shrimp exports, according to a previously issued DSE disclosure.
In the agreement, both parties agreed to work hand in hand to broaden their scope of business and penetrate non-traditional global markets, thus improving the peripheral backward linkage of their businesses.
Gemini Sea in time of the signing said it expected an increase in its revenue of more than Tk 50 crore from the deal.
Usually, Gemini Sea Food exports shrimps to the USA and the European Union by its own sourcing, but under the new agreement, it will process exportable shrimps sourced by Lenk Frozen Foods.
The food and allied-sector company has also planned to raise its paid-up capital to more than Tk 30 crore from the existing Tk 6.10 crore to comply with regulatory requirements.
The company paid 30 percent bonus and a 10 percent cash dividend to its shareholders in for the year ending in June 2022.
With the issuance of the bonus dividend, its paid-up capital increased by Tk 1.40.
The company, according to sources with knowledge of the matter, has also plan to issue bonus dividend for FY23 to further accelerate its paid-up capital base.
Its earnings per share (EPS) rose to Tk 8.20 for January-March of FY23 from Tk 0.04 for the same period of FY22.
The company is currently involved in the processing, packing, and exporting of quality frozen raw shrimp, cooked shrimp, and white fish.
The company’s annual production capacity is 577,890 kilogramme of shrimps and white fish.
Listed on the Dhaka Stock Exchange in 1985, Gemini Sea Food shares closed at Tk 836 crore on the DSE on Thursday.
