ACI profits soar on robust motors, salt, fertiliser sales

Growth in the agro machinery, construction equipment, motorcycle, salt, fertiliser, seed and some other business segments boosted ACI Limited's quarterly revenue and profits in the October-December period.

The conglomerate's consolidated revenue which includes figures of all the subsidiary companies grew 27% year-on-year to Tk2,426 crore in that quarter, which was 13% up from the preceding quarter of July-September.

FH Ansarey, managing director of ACI Agribusinesses, told The Business Standard, "ACI Motors has demonstrated a significant growth in its business as its Yamaha branded motorcycles, a wide range of agro machinery and construction equipment's sales and profits grew."

ACI Motors' revenue for the first six months of the 2021-22 fiscal year crossed the Tk1,000 crore milestone from less than Tk600 crore in the corresponding period a year ago.

Demand for ACI's fertiliser, especially in the North Bengal orchards and farms was very high in recent months. Its seeds and animal health products were also selling well, he added.

Its plastic unit saw a double-digit sales growth in the July-December period as many big-name consumer product companies are buying ACI's plastic products and also its plastic furniture is selling more.

As the subsidiary company, ACI Premiaflex could barely raise prices against a 60% raw material cost hike in a year, it still is posting losses, while its Managing Director Ansarey anticipates the company would take roughly 18 months to come to profits.

After ACI Motors, ACI Salt secured the biggest jump in business as it registered over 40% revenue and pre-tax profit jump in the first half of the fiscal year.

Following its capacity expansion a few years back, the salt business is continuing its industry leadership with roughly one-third market share.

Of the other business segments of ACI in the first half, animal health's revenue was slightly up with a decline in pre-tax profits, consumer brands segment's revenue and loss declined, retail chain Shwapno's revenue went up and losses came down, flour businesses' revenue went up while it fell in losses, and the food segment's revenue and profits both went up.

At the end of December, ACI also reduced its long and short-term bank borrowings while its trade payables increased. But, as the interest rate in the economy had bottomed out a few months earlier, the company's consolidated interest expenses increased in the October-December period, compared to a year ago.

Finally, the consolidated quarterly profit after taxes grew to over Tk30.89 crore from Tk11.96 crore a year earlier.

Of the consolidated profit, Tk15.2 crore is attributed to the ACI shareholders as its 15 subsidiary companies have other shareholders too.

ACI's consolidated earnings per share stood at Tk2.1 for the October-December quarter and Tk5.51 for the July-December period.