ACI Logistics Ltd., the company behind popular retails superstore brand “Shwapno” has recently posted its annual report for FY 2020-21. Revenue of the company increased by 18.8% from Tk 11,563.4 Mn in FY 19-20 to Tk 13,735.2 Mn in FY 20-21. Loss after tax declined from Tk 1,569.4 Mn in FY 19-20 to Tk 1,420.1 Mn in FY 20-21.
Revenue
Revenue increased by Tk 2,171.7 Mn compared to same period last year as the company was aggressive in expansion despite pandemic. In FY 20-21, Shwapno opened 52 new express/franchise outlets focusing mainly on outside Dhaka. Shwapno now serves in about 31 districts holding 49% of the market share in the modern trade industry. As per the annual report, the company now serves about 45,000 customers daily through the stores. Shwapno Express outlets provides about 14,000 customers daily.
To adapt to the new environment of pandemic Shwapno partnered with several companies to deliver daily necessities to customers’ doorstep. The company also introduced home delivery through “Tele Sales” service for customers who are reluctant to use e-commerce channel. Through this service Shwapno brought in 11,000 customers monthly. Shwapno also continued its focus on E-commerce channel which now serves over 30,000 customers each month.
Gross Profit
Gross profit increased by 12.8% compared to same period last year as commodities price increased mainly due to supply chain disruption. Gross profit margin declined by 0.9% from 18.3% in FY 19-20 to 17.4% in FY 20-21.
Loss After Tax
Loss after tax declined by Tk 149.2 Mn mainly due to higher sales and lower opex growth compared to sales. The company focused on cost control measures in this fiscal year which resulted in 18.1% opex to sales ratio compared to 19.0% in same period last year. Shwapno is getting better in cost management as Opex to sales ratio has declined for the third consecutive year.
Future Ahead
Shwapno had another great year in terms of sales growth. The company’s cost management improved even though the pandemic required extra hygiene requirement for employees in the outlet level. If the trajectory continues then we can expect operating profit in FY 21-22.
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