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Bangladesh Export Import Company (Beximco) reported a 43 per cent year-on-year decline in profit to Tk 7.10 billion for FY23, as exports and local demand plummeted.
Beximco, the flagship company of the Beximco Group, gained a higher profit in FY22 mainly for a significant growth in textile division.
The company secured a profit of Tk 7.68 billion in the nine months through March this year but could not avert a loss of Tk 578 million in the final quarter, according to its financial statements.
Apart from the dwindling demand in the overseas and domestic markets, pricier raw materials led to the erosion of profits, said the company in its earnings note.
Moreover, the price hike of gas and electricity escalated the costs of production.
The shrinking profit compelled the company to cut down dividend sharply to 10 per cent in cash for FY23 from 30 per cent disbursed to shareholders for FY22.
The company will hold an annual general meeting on December 28 while the record date is November 13.
It has expanded its operations and investments into a wide range of industries, including textiles, pharmaceuticals, ceramics, real estate development, construction, trading, marine, food, information and communication technologies, media, financial services, and energy.
The group sells its products and services in the domestic market as well as in international markets. Yellow is one of the leading retail fashion clothing brands owned by Beximco.
Beximco did not disclose the annual sales revenue yet. But the nine months' revenue rose only 3 per cent year-on-year to Tk 58.36 billion through March this year while costs of production soared 17 per cent during the period.
The sharp depreciation of the taka against the dollar and high inflation have further impacted the earnings.
Meanwhile, the stock has been stuck at the floor price of Tk 115.60 since November last year.
Beximco established a 600,000 square feet new six-storied garment factory to expand its export capacity as well as to meet the domestic demand.
It raised Tk 30 billion by floating asset-backed Green-Sukuk (an Islamic Bond) mainly to finance two solar power projects and expansion of its textile division.
A majority of Beximco's plants are in the BEXIMCO Industrial Park, a vertically integrated self-contained facility in Gazipur. This facility provides ready access to captive power generation, water purification, liquid nitrogen and waste water treatment.
Beximco Group's two other listed firms --- Beximco Pharmaceuticals and Shinepukur Ceramics also published their annual financial results and declared dividends on Thursday.
Beximco Pharma
Beximco Pharmaceuticals has reported a 9.4 per cent year-on-year drop in consolidated profit to Tk 4.52 billion for FY23.
The profit was lower in FY23 compared to the previous fiscal year because the company had a non-recurring pre-tax income of Tk 619 million that year as vaccine distribution fee under a contractual agreement.
As this particular contract concluded, there was no income from the source in the reporting period, said the drug maker in its earnings notes.
Moreover, the stronger dollar and high inflation ate up earnings.
However, the company declared 35 per cent cash dividend for shareholders for FY23 as it did the year before.
Meanwhile, the stock has remained stuck at Tk 146.20 since February this year.
Shinepukur Ceramics
The ceramic manufacturer has reported a 3 per cent year-on-year profit growth to Tk 59.70 million despite challenges.
The board declared 3 per cent cash dividend for FY23. It also provided 3 per cent cash in the year before.
The ceramic maker's stock price has been stuck at Tk 43 since May this year.