Olympic Industries Ltd witnessed a boost in profits in the first half of FY24 compared year-on-year, due to their production expansion strategy, along with a reduction in operational expenses.
However, the company saw its revenue decrease by Tk 81.48 crore in H1 of current FY compared to the same period last year, according to its financial statement for the July-December period.
The country’s largest biscuit maker and supplier saw a decline in revenue, but the company's production and operational costs fell year-on-year by 7 per cent and 11 per cent respectively.
For this, the company’s net profits after tax rose 8.96 per cent from July to December of FY24.
Olympic Industries Company Secretary Mintu Kumar Das said, “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.
“Initiatives have been taken to buy some more land where the company’s production activities will be used for expansion.”
The company’s revenue in the first six months of FY23 stood at Tk 1,285.87 crore, the second highest in the last three years. Its revenue stood at Tk 1,367.35 crore, Tk 1,035.18 crore, Tk 932.92 crore and Tk 800.44 crore in the first halves of FY23, FY22, FY21 and FY20 respectively.
Majority of the Olympic’s revenue comes from the domestic market, which earned the company Tk 1,270.78 crore in the first half of FY24, compared to Tk 1,352.91 crore in the same period last year.
In the same period of FY22, sales in the domestic market stood at Tk 1,022.52 crore.
On Tuesday, Olympic announced the purchase of 54 plots measuring three kathas each, totaling 162 Kathas of land under the Purbachal Probashi Palli Land Project, in the name of Olympic Industries Ltd, at an agreed total price of Tk 8.91 crore [Tk 5.5 lakh per Katha] from Purbachal Probashi Palli Ltd, Dhaka.
The company also informed that the Board of Directors decided to bear the total registration costs inclusive of VAT, Tax and other charges.
According to the company’s financial statements, Olympic invested Tk 1.58 crore in the first half of FY24, 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 company had long-term debt of Tk 15.81 crore in the first six months of FY24, compared to Tk 17.19 crore in the same period previous year.
In the July-December quarter of FY24, the company’s EPS rose from Tk 5.26 to Tk 5.76, and its profit grew from Tk 105.11 crore to Tk 115.22 crore year-on-year.
Olympic Industries began operations 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 this company.
It is also the pioneer in exporting biscuits from Bangladesh. At present, Olympic is exporting to 30 countries, including the USA, UK, Greece, France, Cyprus, Portugal, Ghana and Somalia.
In the first six months of FY24, the company earned Tk 15.08 crore from exports, compared to Tk 14.44 crore from the same sector in the same period last year.
It got listed on the Dhaka Stock Exchange in 1984 and Chittagong Stock Exchange in 1996. The company’s market capitalisation stands at Tk 3,075 crore, and it has Tk 802 crore in surplus reserves.
Its share price rose to Tk 154 on Tuesday in Dhaka bourse and moved between Tk 153.60 to Tk 155.50.
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.
