The company posted a net loss of Tk119.51 crore and its loss per share was Tk17.49 in the three quarters of 2019-20
ACI paid 100 percent cash and 15 percent stock dividends in the last financial year, despite incurring a loss of Tk74 crore.
Losses of ACI Ltd increased by 218 percent in the first three quarters of the 2019-20 financial year, mainly because of an increased allocation from its profits to repay debts alongside the interest.
Besides, an increase in operational expenses is said to be responsible for multiplying the losses, reads a statement issued by the company.
The company reported in an unaudited financial statement of three quarters – disclosed on Tuesday evening – the revenue increased by 12 percent to Tk5,185.97 crore.
The company posted a net loss of Tk119.51 crore and its loss per share was Tk17.49 in the three quarters of 2019-20.
Meanwhile, in the third quarter (January-March) of the current financial year, the company's total sales stood at Tk1,840.55 crore, which is 19 percent higher than that of the previous year. In the last year, the net loss was Tk37.63 crore, and the loss per share was Tk5.29.
An ACI official, seeking anonymity, told The Business Standard a 47 percent increase of interest against bank loans and the underperformance of a few subsidiaries was the main reason behind the deteriorated financial performance.
Its retail chain subsidiary – ACI Logistics Ltd – alone accounts for around one-fourth of the group's interest-bearing liabilities while it is still adding to aggregated losses each year.
The company paid 100 percent cash and 15 percent stock dividends for its shareholders in the last financial year, despite incurring a loss of Tk74 crore.
ACI Ltd (Advanced Chemical Industries), a legacy of British multinational Imperial Chemical Industries, came under the control of local entrepreneurs in 1992 following a divestment. It was renamed as the ACI Ltd from the ICI Bangladesh Ltd.