ACI posts Tk 74cr in losses
ACI, one of the country’s largest listed conglomerates, incurred a massive loss of Tk 74.2 crore in 2018-19, something it attributes to a jump in bank interest rates and declines in healthcare and agri operations.
Just a year ago, ACI made a profit of Tk 51.7 crore. It last suffered a loss in 2012.
Earnings per share of the company stood at Tk 14.87 in the negative at the end of 2018-19, significantly down from Tk 10.36 in the positive a year ago, according to data posted in Dhaka Stock Exchange (DSE) yesterday.
“A sudden jump in interest rate from 7 percent to 11 percent and volatile foreign exchange market have eroded Tk 70 crore from our earnings this year,” ACI Managing Director Arif Dowla said yesterday.
Addressing a press meet to disclose its quarterly earnings at ACI Center in the capital, Arif said their agri business suffered for low paddy prices last year.
He also spoke of the establishment of a Tk 800 crore pharmaceuticals manufacturing unit to dedicatedly serve the US market.
“This unit is consuming huge amounts of money without generating any revenue as we are waiting to get approval from the US Drug Administration.” “We will get its benefit once we start exporting to the US from it instead of relying on an Indian factory,” he added. He hopes to get the approval midway next year.
Anis Ud Dowla, chairman of ACI, said the government’s promise of a single digit interest rate was yet to come about. “It has impacted us.” “So we have started a process to change our strategy to get equity investment from abroad but it takes time to negotiate,” he said.
In reply to a question, Arif said retail chains around the world took on an average at least 15 years to make a profit, for which they knew it would take some more time for investments in Shwapno of ACI Logistics to bring in returns.
“I hope another three to four years would be enough,” he said, adding that currently it had reached break-even.
To another question, Anis said retail market sales in Bangladesh amounted to around Tk 200,000 crore, of which retail chains accounted for only 1.4 percent whereas it is 7 percent in India and much higher in peer countries. “So Shwapno has huge potential, thus, I think it is our golden egg-laying goose,” he said, requesting to keep patience by overlooking the current losses.
However, ACI declared 100 percent cash and 15 percent stock dividends for its shareholders on last year’s performance.
In the first quarter of 2019-20 (July-Sep), ACI’s earnings per share stood at Tk 5.99 in the negative, whereas it was Tk 0.97 in the same period a year ago.
Each share of ACI was traded at Tk 229 at the Dhaka Stock Exchange yesterday.
FH Ansarey, managing director of ACI Motors, and Pradip Kar Chowdhury, chief financial officer of ACI, were also present.
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