Bangas sees profit drop 73% due to high production costs
However, its gross revenue increased by 34.76% in the first nine months of the last financial year
Bangas Ltd, which is listed on the country's stock market, has reported a staggering 73% drop in its net profit in the first three quarters of the last financial year due to increasing production and operating costs.
However, its gross revenue increased by 34.76% in the first nine months of the last financial year that ended on June 30, 2020.
Established in 1980, the company manufactures and exports a wide array of: breads, biscuits, noodles, vegetable snacks, and chips.
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Presently, the Dhaka-based company exports its products to different Asian countries, the USA and Europe.
Md Ekramul Haque, company secretary of Bangas, told The Business Standard, "The company's business was seriously affected, in October 2019, by the high price of raw materials. The company's raw materials are mainly imported from China, but imports were disrupted during the time.
"As a result, the company had to buy raw materials on the local market at a high cost," he added.
Md Ekramul Haque said the purchase and transportation costs of raw materials doubled during that period.
"Our selling and distribution were also affected by the Covid-19 pandemic," he added.
"Additionally, we had to pay more money to retailer agents for the distribution of products during the nationwide shutdown. But we now are trying to overcome this situation."
In the first nine months of the last financial year, the company's gross revenue was Tk21.52 crore, which was Tk14.04 crore in the same period of the previous year.
At the same time, the company's net profit was Tk0.66 crore, which was Tk2.37 crore in the same period of the previous year.
During this period, the company's total costs and expenses were Tk5.81 crore, which was Tk3.15 crore in the same period of the previous year.
The board of directors has recommended 5% cash and 5% stock dividends for the year that ended on June 30, 2019.
The company's earnings per share was Tk2.17 and net asset value per share was Tk22.22.
Its total share was 76.25 lakh and the reserve is Tk8.51 crore.
Sponsors and directors jointly hold 30.99%, institutions 4.14% and general investors 64.87% of the company's shares.
The company was listed on the Dhaka Stock Exchange in 1984.
The last trading price of the company was Tk158.50 on Thursday.
