Olympic earnings fall to 6-year low
Olympic Industries, a leading biscuit maker, said its earnings slumped to the lowest in six-year suffering an increase in the cost of raw materials.
The maker of popular biscuit brands such as Energy Plus and Tip registered Tk 72 crore in net profits in the July-December period of 2021, down 33 per cent year-on-year, according to its half-yearly financials.
"Cost of raw materials has increased a lot," said Company Secretary Md Nazimuddin.
The company said its revenue from sales rose 11 per cent year-on-year to Tk 1,035 crore in the July-December period of 2021.
Cost of sales of the biscuit and confectionary maker shot up 18 per cent to Tk 786 crore in six months to the end of December 2021 from that in the previous year.
Besides, the Olympic's administrative and sales expenses rose 23 per cent during the period, which altogether affected its operating profit. The company also incurred losses of Tk 3.27 crore from investments in shares during the period.
Shares of the Olympic, however, edged up 1.7 per cent to Tk 161.7 yesterday at the Dhaka Stock Exchange (DSE).
The company in November last year announced that it would invest Tk 25.65 crore to expand its production capacity to meet growing demand.
Its earnings in the October-December period of 2021 declined 39 per cent to Tk 30.45 crore from that a year ago.
The company also recorded a 27 per cent decline in its net operating cash flow per share to Tk 4.13 in the July-December period of 2021 from Tk 5.67 a year ago.
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