Olympic Industries has posted a double-digit profit growth for the July-September quarter this year, having reduced administrative costs substantially.
The country’s leading biscuit maker’s profit soared to Tk 561 million in the quarter, despite a decline in revenue.
The earnings per share (EPS) rose to Tk 2.81 for Q1 of FY24 from Tk 2.33 for the same quarter a year ago, according to its unaudited financial statement published on Monday.
The cost of sales and administrative & selling expenses were reduced by 10 per cent and 20 per cent respectively in the quarter, compared to the corresponding period of the previous fiscal year, supporting the profit growth, said a company official requesting not to be named.
The revenue, however, fell 7.82 per cent year-on-year to Tk 6.33 billion in the first quarter mainly due to natural calamities, like heavy rainfall and storm in some areas of the country, said the company in its earnings notes.
The prices of raw materials, including oil, sugar and flour, dropped marginally after reaching historic highs in the same quarter last year, leading to a reduction in the cost of production, according to the official.
The company also managed to offset some of the additional cost by increasing sales price of all its products. Prices of finished products increased 10-15 percent.
The net operating cash flow per share stood at Tk 4.42, up from Tk 4.32 for the same quarter last year. The net asset value per share was Tk 52.93 as of September this year, up from Tk 49.16 until the same quarter of the previous year.
The company’s annual profit also surged 29 per cent year-on-year to Tk 1.56 billion in FY23.
Based on the profit growth, its board of directors declared 60 per cent cash dividend for FY23, the highest in its history since listing on the stock exchanges in 1989.
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The largest biscuit maker’s stock price, however, dropped 1.20 per cent to close at 156 on Monday.
Olympic Industries is the market leader, capturing more than one-fourth share in the branded biscuit market, and holds the second position in the battery market in Bangladesh.
Olympic Industries has invested around Tk 1.55 billion in the past three years to diversify product portfolio and expand business.
