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KDS Accessories, a subsidiary of Chattogram-based KDS Group, reported a 28 per cent year-on-year decline in net profit for the July-September quarter of FY'24, largely owing to reduced demand for its products.
The company's profit for the first quarter of this year amounted to Tk 35.48 million, down from Tk 49.64 million during the same period in the previous year, according to the price-sensitive information published on Thursday.
Consequently, its earnings per share fell to Tk 0.50 from Tk 0.70 in the corresponding quarter of the previous year.
Also, revenue of the leading garment accessories dropped 23 per cent year-on-year to Tk 589.77 million for the July-September quarter.
The decline in demand for garment accessories, coupled with the surge in raw material costs due to the ongoing dollar crisis, led to the reduced profitability, according to a company official, who declined to be named.
For the September quarter, the net operating cash flow per share showed improvement, reaching Tk 4.69, compared to a negative Tk 1.54 reported during the same quarter the previous year.
For fiscal year 2023, the company's annual revenue dropped 13 per cent to Tk 2.79 billion while net profit fell 8 per cent to Tk 153.20 million.
The impact of this profit erosion led KDS Accessories to reduce its dividend to 10 per cent for FY'23, down from the 16 per cent cash dividend disbursed in the previous fiscal year (FY'22).
KDS Accessories got listed on the stock exchanges in October 2015 by raising Tk 240 million from the stock market for business expansion.
Its shares have remained stuck at the floor price of Tk 77 each on the Dhaka Stock Exchange (DSE) since December last year.
KDS Accessories is the largest garments accessories producer in Bangladesh. The company has tried all along to provide the best services for its clients, according to the company's website.
The company manufactures all types of garments accessories such as corrugated cartons, buttons, hangers, gum tapes and soft line printing products -- labels, elastics, and offset printings.
It supplies materials to major retailers like WalMart, Tesco, and Decathlon.