Apex Foods posts stunning 198% profit growth amid revenue fall
In a surprising turn of events, Apex Foods Limited – a shrimp exporter – has reported a 198% growth in its profit in the first three months of fiscal 2022-23 despite a 48% decline in its revenue.
In a stock exchange filing on Monday, the company said its earnings per share (EPS) have increased significantly due to efficiently running the company as well as cost minimisation.
During the July-September quarter, it reported Tk1.14 crore profit, which was Tk38.43 lakh in the same period of the previous fiscal year.
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Apex Foods's revenue fell by 48% to Tk57.73 crore, which is lower than Tk110.86 crore in the corresponding period of FY21.
In fiscal 2021-22, Apex Foods Limited registered a whopping 148% growth in its net profit compared to the previous fiscal thanks to a surge in the country's shrimp exports.
Its net profit increased to Tk2.90 crore in FY22, from Tk1.18 crore in the previous year.
Apex Foods in its stock exchange filing said a global upturn in the demand for its products, especially food items, and the company's efficient running as well as cost efficiency were the main reasons behind its huge profit growth at that time.
As per data from the Export Promotion Bureau (EPB), shrimp exports from Bangladesh increased by 24% year-on-year to $407 million in FY22, which was also 23% higher than the target set by the government.
At present, shrimp export is now witnessing a decline amid the Russia-Ukraine war as orders significantly fell.
Listed on local stock exchanges in 1981, Apex Foods, owing to growth in FY21, recommended a 20% cash dividend for its shareholders.
Meanwhile, Apex Spinning and Knitting Mills Limited – an associate company of Apex Foods – also posted a 5.47% decline in revenue and a 4.16 fall in profit in the first three months of the current fiscal year.
Its revenue declined to Tk72.03 crore, and profit to Tk52.05 lakh, which was Tk76.19 crore, and Tk54.31 lakh respectively in the same period of the previous fiscal year.
Earlier, the company reported an 18% profit growth in FY22 compared to the previous fiscal year and declared a 20% cash dividend for the shareholders.
