ACI Group, one of the leading local conglomerates in the country has recently posted its financial report for the period Jul’21-Sep’21. Consolidated revenue increased by 18.2% YoY from Tk 18,231.9 Mn in Q1’20-21 to Tk 21,553.7 Mn in Q1’21-22. Profit after tax increased by 647.3% YoY from Tk 40.3 Mn in Q1’20-21 to Tk 301.3 Mn in Q1’21-22.
Revenue
Consolidated revenue increased by Tk 3,321.8 Mn. ACI continued its double-digit revenue which was achieved in Q1’20-21. All businesses except Consumer brands and Healthcare showed growth from the same period last year. Pharmaceutical and Motors businesses are the biggest contributor of consolidated revenue with 18.7% and 17.4% of the total revenue respectively. Pharma business grew by 28.3% YoY and Motors grew by 46.3% YoY. The salt business grew the most with 89.6% YoY growth from Tk 368.2 Mn in Q1’20-21 to Tk 698.3 Mn in Q1’21-22.
In terms of change in revenue, Motors business has been the biggest contributor with 35.7% contribution of the total increase in revenue. Pharma, Food and Salt business contributed with 26.9%, 10.5% & 9.9% of the total increase in revenue respectively. The retail chain which is the third biggest contributor to the total revenue of ACI only grew by 1.0% YoY from Tk 2,968.5 Mn in Q1’20-21 to Tk 2,999.1 Mn in Q1’21-22.
Gross Profit
Gross Profit increased by 16.6% YoY in Q1’21-22 as there was a slight decrease in gross profit margin. The gross profit margin decreased from 28.9% to 28.5%. The rise of commodity prices along with freight costs may have been the primary reason for the slight decrease in gross profit margin.
Profit
Profit increased by a staggering 647.3% YoY from Tk 40.3 Mn in Q1’20-21 to Tk 301.3 Mn in Q1’21-22. The increase in profit is mainly due to an increase in revenue, lower OPEX to revenue percentage, and lower finance costs. Opex only increased by 9.8% YoY whereas gross profit increased by 16.6%. As a result, operating profit increased by 36.5%. Net finance costs decreased from Tk 923.3 Mn in Q1’20-21 to Tk 884.5 Mn in Q1’21-22. The decrease in net finance cost is mainly due to lower financing costs.
Conclusion
ACI had a splendid first quarter in FY 21-22 backed by its important pharma and motors business. As the business activities are now normal again due to the mass vaccination program, ACI is expected to continue to perform well in its main businesses. Net profit margin is still low at 1.4% and there is a potential of improving the margins by focusing on cost controls.
