Olympic’s Profit Decreased By 32.8% In H1’21-222 min read

Olympic Industries Ltd. one of the leading FMCG companies in Bangladesh has recently published its financial report for the period Jul’21-Dec’21. Revenue of the company grew by 11.0% YoY from Tk 9,329.3 Mn in H1’20-21 to Tk 10,351.9 Mn in H1’21-22. However, the net profit decreased by 32.8% YoY mainly due to lower gross & operating margin.

Revenue

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Revenue of Olympic increased by Tk 1,022.6 Mn compared to same period last year mainly due to growth in domestic sales. Domestic sales increased by 11.4% YoY from Tk 9,178.2 Mn in H1’20-21 to Tk 10,225.2 Mn in H1’21-22. Export sales decreased by 16.2% YoY from Tk 151.0 Mn in H1’20-21 to Tk 126.6 Mn in H1’21-22. Despite increased competitiveness and coronavirus the company is doing a great job in maintaining its double-digit revenue growth.

Gross Profit

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Gross profit declined by 7.0% YoY mainly due to higher raw materials price. Wheat, Palm Oil & Sugar which are the main raw materials of Olympic have increased significantly since the pandemic period. As a result, cost of goods sold has increased by 18.2% YoY compared to 11.0% YoY of sales. Gross margin in H1’21-22 was 24.0% which was 28.7% in H1’20-21.

Profit

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Olympic’s profit decreased significantly by 32.8% YoY from Tk 1,073.8 Mn in H1’20-21 to Tk 721.2 Mn H1’21-22.  The decrease of profit is mainly due to higher raw materials costs and opex. Administrative and Selling expense increased by 5.4% and 25.5% YoY respectively.

Future Ahead

Since the start of pandemic period the cost of raw materials costs of Olympic have risen significantly. If the price increase sustains for a longer period, then Olympic might continue to have smaller gross profit margins compared to historical average.

For more updates, be with Markedium.

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