Runner’s Posted Slight Profit Growth In H1’21-222 min read
Runner Automobiles, one of the leading automobiles companies in Bangladesh has recently published its financial report for the period Jul’21-Dec’21. Consolidated revenue increased by 1.0 YoY from Tk 5,252.6 Mn in H1’20-21 to Tk 5,303.1 Mn in H1’21-22. Net Profit after tax increased by 0.3% YoY from Tk 286.4 Mn in H1’20-21 to Tk 287.2 Mn in H1’21-22.
Revenue grew by 1.0% YoY even after the quarter was disrupted by strict lockdown from July to the start of August. Motor Cycle sales declined by 3.8% YoY whereas Truck sales increased by 3.9% YoY. Motor cycle sales was Tk 1,934.3 Mn in H1’21-22 which was Tk 2,011.7 Mn in H1’20-21. Truck sales was Tk 3,368.7 Mn in H1’21-22 which was Tk 3,240.9 Mn in H1’20-21. Truck sales trend is clearly showing recovery in business activities whereas Motor Cycle Sales is still impacted by the pandemic.
Gross Profit increased by 1.1% YoY as gross profit margin increased by 0.1%. Gross Profit margin was 27.2% in H1’21-22 which was 27.1% in H1’20-21. Gross profit declined by 7.4% YoY in Motor Cycle sales where gross profit in truck sales increased by 5.1% YoY. Motor Cycle gross profit was Tk 423.8 Mn in H1’21-22 which was Tk 457.3 Mn in H1’20-21. Gross profit of Truck segment increased from Tk 967.3Mn in H1’20-21 to Tk 1,016.3 Mn in H1’21-22.
Net Profit after tax increased by 0.3% YoY mainly due to higher selling & distribution & financing cost. Operating Income decreased by 3.2% YoY mainly due to 7.2% YoY increase in selling and distribution expense. Financing cost increased by 1.5% YoY from Tk 296.0 Mn in H1’20-21 to Tk 300.5 Mn in H1’21-22.
Truck sales has rebounded from the impact of Covid-19. Motorcycles sales is yet to come back but if the situation continues then the sales is expected to grow in the coming quarters.