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Bangladesh Export Import Company (Beximco) reported 60 per cent year-on-year higher losses to Tk 1.13 billion in the first of FY25, due mainly to lower sales amid political unrest.
Beximco, the flagship company of the Beximco Group, reported a loss of Tk 1.26 per share for the July-September quarter this year, as against the loss of Tk 0.79 per share in the same quarter last year.
The company’s revenue also fell drastically by 48 per cent year-on-year to Tk 3 billion due mainly to dwindling demand for its products in the overseas and domestic markets.
Beximco blamed political unrest, blockades, a state-imposed curfew, internet shutdowns, and additional holidays during July-August significantly disrupted the company’s operations.
“These challenges adversely affected production, marketing, and distribution activities, as well as the transportation of goods to and from ports and the domestic market, resulting in a substantial negative impact on the company’s overall performance,” said the company in its earnings note.
The largest private sector group sells its products and services in the domestic market as well as in global markets. Yellow is one of the leading retail fashion clothing brands owned by Beximco.
However, its stock has been stuck at the floor at Tk 115.60 since November last year as its floor price remained effective.
Beximco also suffered a loss of Tk 368 million in FY24, as exports and local sales plummeted.
The profit erosion compelled the company to cut down the dividend sharply to 5 per cent cash for FY24, from 10 per cent cash disbursed for FY23.
In 2021, it raised Tk 30 billion by floating asset-backed Green-Sukuk (an Islamic Bond) mainly to finance two solar power projects and the expansion of its textile division.