Taufika Foods and Agro Industries Limited, the company behind the ice cream brand “Lovello” has recently published its annual report for FY 2020-21. Revenue decreased by 9.8% from Tk 942.9 Mn in FY 19-20 to Tk 850.8 Mn in FY 20-21. However, profit increased by 50.7% from Tk 63.1 Mn in FY 19-20 to Tk 95.0 Mn in FY 20-21.
Revenue decreased by Tk 92.1 Mn mainly due to second wave of coronavirus which started from April 2021. As per the annual report, the company was able to fulfill its revenue target each quarter except the last quarter in FY 20-21. Targeted revenue for FY 20-21 was Tk 942.9 Mn. The company has 31 product portfolio (based on quantity) and the top 10 products contributed to 90.2% of the total sales in FY 20-21. Regular cup ice cream (100 Ml) is the most popular product of the company with sales of Tk 124.3 Mn (14.6% of total sales).
Gross profit declined by 8.9% in FY 20-21. However, gross profit margin increased from 41.4% in FY 19-20 to 41.8% in FY 20-21.
Profit of the company increased by Tk 32.0 Mn mainly due to lower finance cost and tax. Finance cost decreased from Tk 155.1 Mn in FY 19-20 to Tk 118.0 Mn in FY 20-21. Decrease in finance cost is mainly due to lower interest rate in the market. Tax expense decreased to Tk 1.9 Mn in FY 20-21 compared to Tk 23.2 Mn in FY 19-20.
The company might have to go through another uncertain fiscal year if Omicron variant spreads in Bangladesh. Omicron variant has spread over Europe which forced the continent to take another lockdown measures. It has been also difficult to change the buying behavior of consumers who might have restricted themselves from consuming ice cream products since the arrival of Covid-19.
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