Lovello posts impressive 186% profit growth in Jul-Sept quarter
Lovello Ice-cream, a brand of Taufika Foods and Lovello Ice-cream PLC (a publicly listed company), has posted 186% profit growth in the first quarter (July to September) of the current fiscal year.
The profit growth is driven by an increase in the sales revenue, said the company.
During the quarter, its net profit stood at Tk7.70 crore, which was Tk2.69 crore in the same period of the previous year.
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The ice-cream maker also reported its earnings per share (EPS) at Tk0.91, reflecting an increase of 184% compared to the same period last year. Its net asset value (NAV) per share stood at Tk14.28 at the end of September.
In the last fiscal, the company recommended a 20% dividend (10% stock and 10% cash) for their shareholders.
On Sunday, the share price of the company increased by 4.56% to Tk98.50 on the Dhaka Stock Exchange.
The annual general meeting (AGM) will be held on 30 December via a hybrid platform to secure Lovello Ice-cream shareholders' approval of the dividend and audited financial statements. The record date is set for 10 November.
In September this year, the company announced an investment of Tk150 crore to set up a second ice cream manufacturing plant, aiming at enhancing the company's production capacity.
For the new plant, Lovello has acquired 59.16 decimals of land adjacent to its existing plant in Bhaluka, Mymensingh.
"The investment marks a significant milestone in Lovello's growth," said Company Secretary Moheuddin Sarder.
"With this expansion, we plan to more than double our production capacity and reach a larger market segment, in line with our goal of increasing market share," he added.
Once operational, the new plant is expected to produce 2,50,000 litres of ice cream daily, doubling Lovello's current production capacity. The project is scheduled for completion by June 2025.
A senior executive said, "The expansion is a strategic move to strengthen Lovello's market position and support continued growth."
Lovello plans to fund the investment through internal resources and bank financing. The company's upcoming earnings call will provide additional details on the project's progress and financial impact.
