Fu-Wang Ceramic Industries saw its net profit for the first quarter (Q1) of FY’24 jump 45 per cent year-on-year to Tk 11.64 million, driven by higher sales and a decline in operational costs.
The surge in profit took the earnings per share (EPS) of the tiles manufacturer to Tk 0.09 for the July-September period as against Tk 0.06 for the same quarter a year before, according to a disclosure on Monday.
The company posted higher sales and profit despite prevailing macroeconomic challenges stemming from the Ukraine war and high costs of imported raw materials.
A company official, who declined to be named, said increased sales revenue and lower operational and administrative costs had contributed to the profit growth.
The sales revenue rose more than 4 per cent year-on-year to nearly Tk 231 million in the September quarter while the costs of sales edged up 1.32 per cent to Tk 153.4 million as raw material prices eased to some extent this year.
On top of that, the company managed to pass on some of the increased cost to consumers, resulting in higher profit for the first quarter.
Fu-Wang Ceramic’s net operating cash flow, a measure of a company’s ability to generate cash from its operations, also turned positive at Tk 0.21 per share, from negative Tk 0.68 in the same quarter last year.
The net asset value, which refers to the excess of total assets over total liabilities, rose to Tk 11.99 per share as against Tk 11.91 in the same quarter a year earlier.
Fu-Wang Ceramic, which began its commercial operation in 1996, is engaged in manufacturing and marketing various types of floor and wall tiles through its facility in Hotapara, Gazipur.
The company owns and operates two industrial units for manufacturing of various types and sizes of floor tiles and glazed wall tiles.
The tiles manufacturer’s annual sales also grew 8 per cent year-on-year to Tk 911 million in FY’23 while its net profit rose 14 per cent year-on-year to Tk 36 million. The board had declared a 2 per cent cash dividend for FY’23.
On Sunday, the company’s stock price dropped 3.26 per cent to close at Tk 17.80.
At present, there are 70 ceramic manufacturers are in operation in Bangladesh out of which, 32 companies are producing tiles, 20 are producing tableware, and 18 are producing sanitary ware, according to Bangladesh Ceramic Manufacturers and Exporters Association.
Local manufacturers meet more than 90 per cent of the domestic demand while the rest, mostly high-end products, are imported from Japan, China and Taiwan.
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