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Khan Brothers PP Woven Bag Industries reported a more than 27-fold jump year-on-year in profit to Tk 27.48 million in FY25, a feat attained through what the company claims is a strategic shift in business policy.
The woven bag manufacturer posted earnings per share of Tk 0.27 for FY25, up from Tk 0.01 in FY24, according to a stock exchange filing on Wednesday.
The company's export operations have remained suspended since 2022 over compliance issues and it incurred losses for the four years through FY23.
"Our strategy paid off. We started local sales alongside subcontract work, which helped improve our sales and profit.We believe we will be able to continue this trend in the future," said Tofayel Kabir Khan, managing director of the company.
The listed entityhad returned to a marginal profit of Tk 0.86 million in FY24 and declared a 1 per cent cash dividend for the year. The recent annual profit growth was not a complete surprise for investors, as the company had already shown signs of improvement in the first nine months of FY25.
For FY25, the company declared a 10 per cent cash dividend - the first double-digit dividend since its listing in FY14. The dividend is meant only for general shareholders.
"We were in trouble due to the coronavirus pandemic and later the Ukraine-Russia war, but we believe we will be able to make a comeback this time," Mr Khan added.
Following the earnings disclosure, the company's share price declined by 1.63 per cent to Tk 102.60 per share on Wednesday on the Dhaka bourse.
The stock's price-to-earnings ratio based on the latest earnings stood at 380, which is very high.
Alongside the surge in earnings, cash flow from operations also improved, rising from Tk 0.08 per share to Tk 0.27 in FY25.
Net asset value (NAV) per share increased to Tk 12.07 in FY25 from Tk 11.88 in FY24.
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