Walton profit soars 48pc in Q1 on higher sales, lower finance costs

Walton Hi-Tech Industries secured a remarkable 48 per cent year-on-year growth in profit to Tk 2.21 billion in the first quarter of FY26, driven by higher sales and lower finance costs.

Higher sales and significantly lower finance costs, largely due to lower impact from the currency devaluation after partial repayment of debts helped secure a healthy profit growth, said the company in its earnings note.

The company's sales grew more than 19 per cent year-on-year to Tk 14.51 billion, while finance costs dropped sharply by 65 per cent year-on-year to Tk 381 million in the quarter to September.

Finance costs were reduced by cutting short-term debts to Tk 12.15 billion in September this year from Tk 17.88 billion in June this year.

The company's selling and distribution expenses, however, increased more than 17 per cent due to an expansion of the network to achieve higher sales.

The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, jumped to Tk 14.79 per share in the quarter from just Tk 3.92 per share in the same quarter last year, due mainly to higher collection and lower payment to suppliers.

The management remains optimistic about Walton's continued growth momentum, anticipating healthier profits ahead, riding on a stable forex market and efficient management.

Walton has become the leader in the domestic market for electrical and electronic products and home appliances.

It holds around 75 per cent share of the refrigerator market and accounts for half of all television sales in Bangladesh. Alongside refrigerators, freezers, air conditioner, and television & compressor, it has branched out into manufacturing elevators.

Having set up its first compressor manufacturing plant in 2017, Walton now exports refrigerators to many countries. It has reached more than 50 countries with different products.

Annual performance

Walton Hi-Tech's profit dropped 23 per cent year-on-year to Tk 10.37 billion in FY25 due mainly to lower sales amid inflationary pressure.

Its sales revenue dropped 5.72 per cent to Tk 70.82 billion in FY25, primarily due to subdued consumer demand arising from the political unrest surrounding the student-led uprising in the country between mid-July and mid-August 2024, the company said.

Due to the decline in profit, the company paid 175 per cent cash and 10 per cent stock dividends for FY25, down from 350 per cent cash dividends paid for the year before.

Meanwhile, Walton's stock closed at Tk 363.50 per share on Wednesday, losing 0.11 per cent over the previous day.

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