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Crown Cement, a leading player in the cement industry, has made a remarkable recovery in the fiscal year 2023, reporting a substantial profit after suffering losses in the previous fiscal year.
For FY'23, the company posted a profit of Tk 610.34 million, a significant rebound from the loss of Tk 229.27 million in FY22.
This turnaround was driven by robust sales growth and an increase in product prices.
The Board of Directors approved the financial statements for FY'23 at a meeting held on Sunday, where they also recommended a 20 per cent cash dividend.
In FY'23, Crown Cement reported a year-on-year loss of Tk 0.36 per share for the first quarter (July-September), followed by profits of Tk 0.99 and Tk 1.52 per share for the second and third quarters respectively.
In FY'22, the company incurred losses due to rising raw material costs, foreign exchange losses, and increased freight charges.
Company secretary Md. Mozharul Islam said the growth in sales volume by 7.31 per cent and a substantial increase of 17.75 per cent in product price contributed to the company's profit in FY'23.
The company's net asset value (NAV) per share also rose to Tk 52.22 in FY'23 from Tk 49.18 a year before.
However, the company's net operating cash flow saw a moderate decline in FY'23 due to increased supplier payments and a higher inventory value.
The net operating cash flow per share stood at Tk 11.43 for FY'23 as against Tk 21.83 reported in the previous fiscal year.
The company secretary said their company emphasized the importance of maintaining a significant inventory to mitigate potential risks associated with currency devaluation.
The inventory would serve as a buffer to ensure uninterrupted production in case of further fluctuations in exchange rates, he added.
The share price of the Crown Cement remained stuck at the floor price of Tk 74.4 since June 12.