Olympic Industries secured the highest quarterly profit of Tk 625 million in the second quarter of FY26, driven by higher sales amid capacity expansion and product portfolio diversification.
The branded biscuit manufacturer sustained its growth momentum, supported by newly introduced chocolate and cookie plants.
The company's revenue grew almost 5 per cent year-on-year to Tk 7.70 billion in the October-December quarter, while the cost of sales also rose 4 per cent, leading to marginal growth in profit.
Olympic Industries maintained a gross profit margin of 25.5 per cent during the quarter under review, compared to 24.86 per cent in the same quarter of the preceding year.
Company secretary Mintu Kumar Das said revenue and profit increased during the quarter mainly due to effective measures taken by the management to boost sales.
Strong fundamentals, good management, and quality products helped Olympic continue on its growth trajectory, he added.
Revenue nearly doubled in the five years to FY25, reflecting an average CAGR (compound annual growth rate) of 13.6 per cent, implying the success of its continued capacity expansion and strategic diversification into a broader product portfolio, according to EBL Securities.
The biscuit manufacturer generates 98 per cent of its revenue primarily from the sale of branded biscuits and confectionery items, while local sales contribute most of its revenue earnings.
To meet the growing demand, Olympic Industries invested Tk 500 million to expand its existing production facilities, using a JICA-funded loan under the Food Value Chain Improvement Project last year.
The company invested the funds in a multi-functional chocolate plant and a new cookie production line to increase output.
It projected an annual increase in the production of cookies by 9,048 tonnes and chocolates by 3,300 tonnes following the capacity expansion.
The company's half-yearly profit rose almost 3.5 per cent year-on-year to Tk 1.20 billion in the July-December period last year, while revenue rose 4 per cent to Tk 15.48 billion during the period.
Currently, the company is producing more than 85 high-quality products-from biscuits and baked treats to noodles and snacks.
Alongside capacity expansion, Olympic Industries has been investing heavily in land acquisition for future growth. Since 2019, the company has invested Tk 1.33 billion to acquire 2,562.1 decimals of land across Narayanganj, Dhaka, and Gazipur.
The company's board at a meeting last Wednesday decided to purchase another 159 decimals of land for Tk 230 million at Kanchpur, Narayanganj, for future expansion.
"The land acquisition is part of a larger strategic investment plan for business expansion," the company secretary said.
Over the last six years, Olympic Industries has invested more than Tk 4 billion in factory expansion to establish a strong foothold in the confectionery industry.
Olympic Industries, which entered the biscuits and confectionery industry in 1996 and ventured into the ballpoint pen industry in 2008, has also started producing saline products, plastic items, and cartons (mainly for internal use).
EBL Securities, in its equity note on Olympic, stated that the company had made significant investments to enter major segments such as instant noodles, dry cakes, soft cakes, chanachur, chocolates, and other bakery products.
A substantial cash position enables the company to finance its BMRE projects internally, reducing the need for high-cost borrowing and thereby containing financial expenses, said EBL.
"These investments clearly point to the company's expansion strategy," EBL noted.
Listed in 1989, Olympic Industries captures more than one-fourth of the branded biscuit market and holds the second position in the battery market in Bangladesh.
The leading biscuit manufacturer has remained consistent in financial performance and is considered one of the best-performing blue-chip stocks.
Overseas investors held a 32.83 per cent stake in Olympic Industries as of December last year, the second highest after BRAC Bank among listed securities.
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