ACI logs Tk291cr loss in Shwapno, foods, plastics, healthcare in H1
However, the conglomerate posted a pre-tax profit of Tk306 crore from its pharmaceuticals, animal health, consumer brands, crop care and public health, motors, pure flour, salt, and flexible packaging segments, up from Tk 246.49 crore a year earlier
ACI Limited's pre-tax loss rose by 15% year-on-year to Tk291.42 crore in its retail chain Shwapno, as well as its foods, consumer plastics, and healthcare businesses during the July-December period of FY25.
However, the conglomerate posted a pre-tax profit of Tk306 crore from its pharmaceuticals, animal health, consumer brands, crop care and public health, motors, pure flour, salt, and flexible packaging segments, up from Tk 246.49 crore a year earlier.
These businesses operate under 12 subsidiaries of Advanced Chemical Industries (ACI) Limited, in which the company holds majority stakes, according to its financial statement.
Despite this, ACI incurred a net consolidated loss of Tk70 crore in the first half of FY25, primarily driven by a 43% increase in interest payments due to rising policy rates. Its consolidated loss per share was reported at Tk7.99.
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During the July-December period, the group's total revenue reached Tk6,619 crore, up from Tk6,244 crore in the corresponding period of the previous year, reflecting 6% growth.
In its financial statement, the company reported that for the half-year period ending on 31 December 2024, the group achieved 6% revenue growth, driven by several business segments.
During this period, growth in gross profit outpaced the increase in operating expenses, thanks to effective cost control measures that contributed to an improvement in operating profit.
However, the cost of borrowing rose due to higher interest rates, coupled with additional funding for working capital and strategic investments aimed at supporting business growth. This led to the incurred loss, as stated in the report.
As of December, ACI's total short-term loans amounted to Tk5,663 crore, while long-term loans stood at Tk 564 crore.
Segment-wise performance
ACI Limited demonstrated mixed financial performance across its diverse business sectors during the first half.
The motor business emerged as the highest revenue contributor, generating Tk1,699 crore with 10% growth in the sector. However, profit before tax in this segment dropped by 16%, standing at Tk109.89 crore.
ACI operates its motor business through its subsidiary, ACI Motors Limited, in which ACI Limited holds a 48.10% stake. ACI Motors engages in buying, selling, importing, and assembling vehicles for both agricultural and non-agricultural use.
The company also has a distribution agreement with India Yamaha Motor Private Ltd to sell and distribute Yamaha brand motorcycles and parts in Bangladesh.
Shwapno experienced 17% revenue growth, earning Tk1,234 crore during the period. Despite this, the segment reported a significant pre-tax loss of Tk126 crore.
The pharmaceuticals segment reported revenues of Tk874 crore, a 6% increase compared to Tk821 crore in the same period of the previous year. Profit before tax in this segment jumped 55%, reaching Tk86.65 crore.
In other sectors, the conglomerate generated the following revenues: Tk271 crore from animal health, Tk524 crore from consumer brands, Tk227 crore from crop care and public health, Tk370 crore from pure flour, Tk140 crore from salt, Tk487 crore from foods, Tk321 crore from flexible packaging, Tk150 crore from consumer plastics, and Tk81 crore from healthcare.
The healthcare segment was the most loss-making business, incurring a pre-tax loss of Tk143 crore. Additionally, the foods and consumer plastics segments also reported losses during the first half.
Stock performance of ACI
The company's share ended 0.34% higher at Tk147.70 on Thursday at the Dhaka bourse. Its market capitalisation stood at Tk1,294 crore.
For FY24, the company paid a 20% cash dividend and a 15% stock dividend, compared to 40% cash in the previous year.
It incurred a consolidated loss of Tk160 crore in FY24, extending its loss-making trend for the second consecutive year.
ACI Limited was incorporated on 24 January 1973 as ICI Bangladesh Manufacturers Limited and was listed on the stock exchanges in 1976.
