Lub-rref (Bangladesh) posted higher profits in the second quarter of the 2024-25 fiscal year but saw its revenue decline year-on-year.
The company reported a net profit of Tk 3.33 crore in the October–December quarter of FY25, marking a significant 87 percent year-on-year increase.
Its earnings per share (EPS) rose to Tk 0.23 in the second quarter, up from Tk 0.12 in the same period last year, according to its financial statements.
Despite the profit surge, Lub-rref’s revenue declined by 4 percent year-on-year to Tk 22.17 crore in the quarter.
For the first half of FY25, the company reported a loss per share of Tk 0.19, compared to an EPS of Tk 0.25 in the same period of the previous fiscal year.
Lub-rref attributed the earnings decline to product shortages stemming from banking cooperation issues, internal disruptions at Social Islami Bank PLC (SIBPLC), and prolonged market gaps that benefited competitors, according to a recent filing on the Dhaka Stock Exchange (DSE) website.
The company also said it had engaged with SIBPLC officials for facility approvals, submitted the necessary documentation, and initiated a market reorganisation strategy.
Its earnings per share (EPS) rose to Tk 0.23 in the second quarter, up from Tk 0.12 in the same period last year
The measures, including product updates, pricing reviews, automation, and rebranding, aim to restore supply, regain market position, and improve long-term profitability, Lub-rref added.
The company’s net operating cash flow per share stood at Tk 1.36 for July–December 2024, slightly lower than Tk 1.40 in the previous year.
Lub-rref (Bangladesh), established in 2001, is headquartered in Chattogram, Bangladesh. Operating under the ‘BNO’ brand, it manufactures and supplies a wide range of lubricants and allied products for the automotive, industrial, and marine industries.
The company also offers services such as onsite transformer oil filtration and used transformer oil reclamation. Shares of Lub-rref (Bangladesh) dropped 0.63 percent to Tk 15.7 in mid-day trading yesterday at the DSE.
https://www.thedailystar.net/business/news/lub-rrefs-q2-profit-jumps-87-3825386
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