Olympic shines amid inflation
H1 profit stood at Tk105cr, nearing Tk120cr annual FY22 profit
The soaring prices of raw materials, supply chain disruptions, and other economic uncertainties seemed to be not much of a challenge for Olympic Industries in the July to December period of the ongoing fiscal year.
According to its unaudited financial statement in the first half of fiscal 2022-23, the company's net profit jumped 46% year-on-year and stood at Tk105 crore, nearing its previous fiscal's annual profit of Tk120 crore.
In the July to December period, the company's revenue also increased by 32% to Tk1,363.35 crore, compared to the same six months a year ago.
Olympic registered growths in both the local sales and exports of its products which explains the revenue upsurge.
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While its local sales grew by 32% year-on-year to Tk1,352.91 crore, its exports also increased by 14% to Tk14.44 crore in the first half of FY23.
According to company officials, the growing demand for branded biscuits as well as the company's raising of its product prices helped boost its half-yearly revenue.
Olympic's Company Secretary Md Nazimuddin told The Business Standard, "Owing to several disruptions in shipping the raw materials, we have sometimes been unable to supply as per the growing demand."
"Therefore, we had to increase the prices of our products, however slightly."
In the July to December period of 2022, Olympic's other income fell by 9.5% to Tk12.74 crore and administrative costs fell by 17% to Tk15.72 crore, compared to the same period previous year.
Olympic's quarterly revenue and profit also grew year-on-year by 26% to Tk680.28 crore and 90% to Tk58.62 crore respectively in the October to December quarter of FY23.
In the previous 2021-22 fiscal year, Olympic's business was hit hard by the price hike of raw materials fuelled by the Russia-Ukraine war, as its profit declined by 41% year-on-year and stood at Tk203.73 crore.
Owing to the profit decline, the company paid a 45% cash dividend in FY22, down from 54% in FY21.
Olympic Industries manufactures confectionary items, as well as dry cell batteries. The company has been publicly listed since 1989.
