Olympic posts 28% decline in quarterly profit

Olympic Industries Ltd posted a 28% profit drop in the July-September (first) quarter of this fiscal year.

The company's earnings per share (EPS) dropped to Tk2.06 in the period, from Tk2.85 in the same quarter of the previous fiscal year.

The champion in the biscuit market of the country did manage to grow its quarterly sales to over Tk496 crore from less than Tk466 crore in the corresponding quarter of 2020.

But a rise in costs of goods sold, understandably due to the commodity price hike, shrank its gross profits to below Tk130 crore, which was more than Tk136 crore a year ago.

Its operating expenses that include administrative and selling expenses slightly disproportionately increased to over Tk78 crore from Tk66 crore.

It had a moderate drop in finance costs and tax expenses in other income and in the fair value of its investment in stocks.

Finally, its quarterly net profits dropped to Tk41.27 crore from Tk57 crore in the same period a year ago.

Earlier, Olympic recommended 54% cash dividends for the 2020-21 fiscal that ended in June. Its annual EPS slightly grew to Tk10.19 from Tk10.13.

At the end of September, the company's net asset value per share was Tk48.27.

The company began its journey in 1979 as Bengal Carbide Ltd, a battery manufacturer. In late 1990s it emerged as a quality biscuits manufacturer and won the market leadership gradually.

Now, around 95% of the company's annual revenue comes from biscuits.  

Olympic shares, having a face value of Tk10 each, closed 1.36% higher at Tk163.4 on Monday in the Dhaka Stock Exchange.