Yarn producer Matin Spinning Mills gained 59.41 per cent lower profit to Tk 427 million in FY23, compared to the year before, as raw material prices, fuel cost and finance cost soared.
Spinners are unable to increase their product prices since the demand for clothing has gone down in the international market. At the same time, their import cost for cotton has increased as the dollar has become stronger. Higher fuel cost and interest burden against bank loans also added to the cost burden.
This is the backdrop to the decline in profit despite higher sales revenue.
Matin Spinning Mills' cost of goods sold accounted for 76 percent of sales revenue in FY22, which rose to 90 percent in FY23, according to a stock exchange filing on Monday.
Earnings per share (EPS) decreased mainly due to the increase in the cost of goods sold, which occurred due to a significant spike in raw material cost, power and fuel cost, finance cost as well as other costs, said the company in the disclosure.
The company declared 40 per cent cash dividend for FY23, reduced from 50 per cent disbursed for the year before.
The cash flow and asset value also declined.
The net operating cash flow per share (NOCFPS) dropped due to higher payment to suppliers, employees, and lenders though the sales proceeds rose in the year.
NAV per share slid due to the shrinking profit margin. Matin Spinnig declared net asset value per share (NAVPS) of Tk 60.06 for FY23, down from Tk. 60.63 for FY22.
Net operating cash flow per share dipped to TK4.97 for FY23 from TK6.17 for FY22.
The company secured a profit of Tk616 million in FY21 and Tk1.05 billion in FY22 and disbursed 40 per cent cash dividends for both the years.
The stock has been confined to the floor, at Tk77.60, since November last year.
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