ACI Foods Limited, a subsidiary of ACI limited has recently published its annual report for FY 2020-21. Revenue increased by 15.8% from Tk 5,158.7 Mn in FY 19-20 to Tk 5,976.2 Mn in FY 20-21. Loss after tax declined from Tk 105.0 Mn in FY 19-20 to Tk 44.5 Mn in FY 20-21.
Revenue
Revenue increased by Tk 817.6 Mn despite challenges faced due to pandemic. The company is manufacturing, marketing, and distributing products like spice, mustard oil, rice, noodles, bakery, and snacks items under the brand names – Pure, Fun & Xtra Fun. The growth is mainly due to innovative product development and effective branding.
ACI pure has expanded its mixed spices portfolio by introducing Dry Fish Masala, Dhakaia Kachhi Biriyani Masala, Chilli Flakes and a taste enhancer named Shaad E Dhamaka. Fresh fry was also launched under the brand of Fun which is a home-made snacking solution for kids.
ACI Pure Chilli became the best chilli powder in Bangladesh as the company collaborated with prominent chilli scientist and farmers to grow the best breed of chillies in Bangladesh.
Gross Profit
Gross profit increased by 5.3% mainly due to higher raw material prices. Due to the global supply chain disruption caused by the pandemic most of the raw material prices increased significantly. Hence gross profit margin decreased by 1.3% from 14.8% in FY 19-20 to 13.4% in FY 20-21.
Loss after Tax
Loss after tax decreased mainly due to higher sales and lower finance costs. Finance cost decreased from Tk 370.6 Mn in FY 19-20 to Tk 293.4 Mn in FY 20-21. The decrease in finance cost is mainly due to lower interest rate in the market. Other income also contributed to the decrease of loss by increasing from Tk 6.4 Mn in FY 19-20 to Tk 24.5 Mn in FY 20-21.
Future Ahead
The company is showing potential by growing double digits in the last two fiscal year. The loss is also declining is which a sign towards profitability in the coming fiscal year. So, if the company can maintain its performance of the last two fiscal years we can expect a profitable year for ACI Foods limited in FY 21-22.
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