Olympic Accessories hit hard by Covid-19

Olympic Accessories– which manufactures all kinds of garment accessories – has been hit hard by the countrywide shutdown enforced to rein in the coronavirus spread.

The company mainly supplies its products to the country's readymade garment industry as a deemed exporter. It has reported losses for the first two quarters of the current fiscal year.

And for this, Olympic Accessories, which is listed on the country's stock market, has blamed the standstill in the readymade garment industry.

The company has not received many orders from its buyers in the first half of the current fiscal year.

Thus, the sales of the company have fallen by around 57 percent. Additionally, for reducing the manpower from its marketing department, the company has failed to create a new market.

"The company usually manufactures products upon purchase orders. Our sales have dropped because of a decline in the procurement orders in the first half," said Habibullah, secretary of the company.

"Garment factories mainly purchase our products. But, they have reduced the purchase orders due to a standstill in the industry – resulting in a sharp decline in both production and sales of the company," he added. 

He said the factory had been closed since the beginning of the countrywide shutdown on March 26.

According to the financial report of the first half of the current fiscal year, the company's net loss was Tk5.67 crore and the earnings per share was Tk0.33 negative.

But the company's net profit was Tk4.93 crore and earnings per share was Tk0.29 positive in the same period of the previous year.

During this period, the company's net sales were Tk22.22 crore, 57.97 percent lower than that in the previous six months.

In addition, the company's sale and distribution expenses have reduced by 17.61 percent.

In the fiscal year 2018-19, the company's net profit was Tk9.67 crore, 19.48 percent lower than in the previous year.

The company recommended 2 percent cash dividend for the fiscal year 2018-19 for its shareholders.

The company's sponsors and directors jointly own 20.68 percent shares, institutional investors 19.37 percent, and general investors 59.95 percent.

Olympic Accessories Limited was incorporated in May 2003 and started its commercial operation in October 2007.

The company is 100 percent deemed exporter, mainly engaged in the business of manufacturing of all kinds of garments accessories.

The company was listed on the both stock exchanges in 2015.

The last trading price of each share of the company at the Dhaka Stock Exchange was Tk6.80.