Paper business turns around
Bashundhara Paper Mills posted a 19% growth in revenue and 29% in profit
After a gigantic shock from the Covid-19 pandemic, the paper and paper products manufacturers' business has rebounded thanks to the revival of sales of their products.
In the first nine months of fiscal 2021-22, most listed firms, out of six in the sector, witnessed higher sales and revenue after the reopening of schools, colleges and other educational institutions.
Bashundhara Paper Mills – the market leader in the tissue industry and one of the major players in the paper industry – posted a 19% growth in revenue and 29% in profit.
The revenues of Sonali Paper and Board Mills, and Paper Processing and Packaging Co has increased by 49%, and 207% respectively.
The profit of Monospool Paper rose by 871% but the company is yet to publish its quarterly revenue for the July-March period.
In the last two fiscal years, the paper industry faced a blow of lower demand and declining sales as educational institutions were closed for a long time.
In September last year, when the pandemic situation eased down, the government reopened the institutions.
After that, sales of paper and paper products started to increase gradually, said industry insiders.
Bashundhara Paper sales are almost at the pre-pandemic level
The sales of Bashundhara Paper Mills have rebounded to almost the pre-pandemic level in the July-March period of the current fiscal year.
When the pandemic hit the country in March 2020, the sales of the company were Tk727.17 crore in the first nine months of fiscal 2019-20, an 18% lower over fiscal 2018-19 from Tk888.2 crore.
In the July-March period of the current fiscal year, sales rose to Tk847.22 crore, a 19% increase from Tk713.2 crore in the same period of fiscal 2020-21.
Bashundhara Paper's tissue & hygienic sales surpass paper
A variety of papers are the main products of the Bashundhara Paper Mills. It also has a variety of tissues and hygienic products.
According to the available data, papers were the main contributors to the sales of the company.
But due to the pandemic as well as growing consciousness among the people, tissue and hygienic product sales boomed amid the Covid-19 pandemic.
Earlier, its revenue from the tissue and hygienic segment was much lower than the paper segment.
In the first nine months, its revenue from tissue and hygienic surpassed the paper segment.
Paper segment revenue stood at Tk330 crore, while tissue at Tk322 crore and hygienic at Tk164 crore.
Sonali Paper's profit soars on share sales
Sonali Paper and Board Mills, a concern of Younus Group of Industries, has posted huge profit jumps in the first nine months of FY22 compared to the same period of the previous fiscal year.
According to its financials, during the July-March period, its profit soared to Tk32.33 crore.
At the same time of the previous fiscal year, its profit was only Tk4.19 crore.
Its profit soared because of gain from sales of shares as realised gain.
Its operating profit soared by 79%, and the company earned Tk26.6 crore from selling shares.
