KDS profit drops despite steady growth in previous years

KDS Accessories, a garment accessories manufacturer, reported a decline in its profits by 7.52 per cent for the fiscal year 2023, compared to the previous fiscal year.

This drop in earnings was primarily attributed to a significant fall in revenue despite the company's consistent profit growth over the past six fiscal years.

For FY'23, KDS posted a net profit of Tk 153.25 million, down from Tk 165.72 million reported in FY'22, while the company's revenue fell 12.66 per cent to Tk 2.79 billion, compared to the previous fiscal year.

Due to the decline in net profit, the earnings per share (EPS) of KDS Accessories dropped to Tk 2.15 for FY'23 from Tk 2.33 in the previous fiscal year.

At a meeting on Monday, the board of directors of KDS Accessories reviewed the company's financial statements and recommended a 10 per cent cash dividend for FY'23.

Company secretary Mohammad Ilias said the decline in revenue had resulted from a sluggish demand for accessory products.

The company's net operating cash flow per share stood at Tk 8.97 in the negative for FY'23 as against Tk 8.97 in FY'23.

However, the net asset value (NAV) per share saw an increase, rising to Tk 26.13 for FY'23, compared to Tk 25.58 in the previous fiscal year.

KDS disbursed 15 per cent and 16 per cent cash dividends for FY'21 and FY'22 respectively.

The company's share price remained stuck at the floor price of Tk 77 since December 15, 2022 on the Dhaka Stock Exchange (DSE).

farhan.fardaus@gmail.com