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Bangas Ltd, which owns some of the best-selling biscuit brands, posted an impressive 75 per cent year-on-year profit growth in the second quarter (Q2) of the FY23.
The fast-moving consumer goods company that manufactures chips, biscuits and bread recorded a profit of Tk 0.53 million in three months to December last year, up from Tk 0.30 million in the same quarter a year ago.
Despite higher profit, its stock price fell 0.82 per cent to Tk 109.20 on Tuesday. Its share price plunged 17 per cent from the recent peak seven weeks ago at Tk 131.5.
The first quarter (Q1) profit dropped 17 per cent year-on-year to Tk 0.38 million due to cost escalation during the period.
A 10-15 percent price increase of finished products in the second quarter offset the production cost to some extent. As a result, profit jumped in Q2, said an official of the company, requesting anonymity.
The cost of raw materials, including oil, sugar and flour rose significantly, so there was no way to avoid the price hike of finished products, he said.
Earnings in Q1 and Q2 combined, the biscuit manufacturer's profit rose 33 per cent year-on-year to Tk 0.91 million in the first half of the FY23, according to financial disclosures made on Q1 and Q2 simultaneously on Tuesday.
The net operating cash flow per share increased to Tk 0.51 for July-December 2022 from Tk 0.43 for July-December 2021 since the company's collection was higher from customers in the six months this year than the previous year.
Company Secretary Md Zinnat Ali Mirdha could not be reached over the phone despite repeated attempts.
Bangas, which was listed on stock exchanges in 1984, sells Grand Choice, Evening Touch, Wonder, Glucose, Lexus and many more.
Presently, the company produces five tonnes of biscuits and five tonnes of bread per day. It also exports products to the USA, Europe and the Middle East.
Its peer firm listed on the stock market, Olympic Industries also posted a remarkable growth in sales and profit in the second quarter of the current fiscal year.
The country's leading biscuit manufacturer's revenue rose 26 per cent year-on-year to Tk 6.80 billion in Q2, FY23. And net profit jumped 90 per cent to Tk 586.2 million.
The total size of the country's biscuit and confectionery market is around Tk 70 billion, meeting 97-98 per cent of the domestic demand, according to the Bangladesh Auto Biscuits and Bread Manufacturers Association (BABBMA).
The local biscuit industry is growing fast riding on the surging demand of consumers.