- Net profit was Tk0.69 crore in the Oct-Dec period of 2020
- EPS stood at Tk0.32 at the end of 31 Dec last year
- Lovello Ice Cream raised Tk30 crore through IPO
Lovello Ice Cream, which is set for its stock market debut on Wednesday, has weathered the fallout from the ongoing pandemic and posted a 214% profit growth in the second quarter of the current fiscal year.
In a stock exchange filing on Tuesday, Lovello – a brand of Taufika Foods and Agro Industries – said its profit in the October-December period was Tk0.69 crore, which was Tk0.22 crore over the same period a year ago.
However, in the first half of this fiscal year, its profit after taxes stood at Tk2.74 crore, down from Tk3.20 crore in the same period of fiscal year 2019-20.
The earnings per share stood at Tk0.32 at the end of 31 December last year.
A high official of the company, asking not to be named, said that Lovello has managed to overcome the impact of the Covid-19 pandemic.
"When educational institutions are opened, ice cream businesses will achieve higher growth," he added.
On 15 October last year, the Bangladesh Securities Exchange Commission (BSEC) approved Lovello's initial public offering (IPO) proposal.
Lovello Ice Cream raised Tk30 crore by issuing three crore shares at a face value of Tk10 each. The money is due to be used to purchase machinery and equipment, repay loans and meet IPO costs.
Banco Finance and Investment as well as Sandhani Life Finance are the issue managers of the company for the IPO process.
Lovello's revenue rose by 93% to Tk92.28 crore in three consecutive years till fiscal 2018-19.
In FY20, the company posted 2% growth in revenue despite the novel coronavirus pandemic.
According to the company's prospectus, the size of the country's ice cream market was Tk1,200 crore till 2019. It is a fast-growing industry, which has been expanding by 12% per year.
Currently, six companies manufacture ice cream products in Bangladesh. Of them, three – Igloo, Polar, and Lovello – together hold 80% of market share.
Premium Ice Cream, which is more expensive than other ice-cream brands, accounts for nearly 15-20% of the market.
Igloo, the market leader, holds a 38% share while Polar has 20%. Lovello's market share is approximately 15%.
Taufika Foods and Agro Industries started commercial operations in January 2016. Its paid-up capital is Tk55 crore.