Most firms listed on the SME platform secured a year-on-year growth in profit in FY23, despite macroeconomic challenges, as they are less vulnerable to foreign exchange fluctuations.
The profit of eight, out of 14 companies, which have made annual earnings disclosures, went up 5.56 to 354 per cent year-on-year in FY23. They recorded higher volumes of exports and local sales in FY23, compared to the previous fiscal year.
Among the high-profit making companies, Nialco Alloys exports 100 per cent of its products, while Yousuf Flour reaped the benefit of product price increases in the year.
Himadri, which runs six cold storages across the country, also gained a remarkable 43 per cent rise in earnings in FY23 from the year before, but did not provide any reason behind the growth.
Himadri, a concern of the Ejab Group, has declared the highest-ever dividend -- 700 per cent stock and 10 per cent cash -- for FY23.
On the other hand, all the ago-based businesses slowed down in FY23, compared to FY22, due to high input costs. The sole listed footwear maker on the platform, MK Footwear's profit also witnessed a steep year-on-year fall in FY23.
Nialco Alloys, an exporter of copper alloy products to Europe, Africa, and Asia, has the advantage of being the sole company of the kind in Bangladesh.
In the absence of any competitor, its export volumes jumped, which, according to company secretary Tariqul Islam Chisty, supported the business growth. Japan is one of Nialco's main markets. Its profit soared 310 per cent year-on-year to nearly Tk 60 million, the highest so far, in FY23.
It manufactures high grade bronze and brass ingots, including gun metal, phosphorus bronze, leaded bronze, aluminum bronze, manganese bronze, sand cast brass (SCB), high tensile brass (HTB), die cast brass (DCB), master alloys and phosphorus copper.
Nialco Alloys' total export escalated more than 194 per cent year-on-year to Tk 606 million in FY23.
Yousuf Flour Mills, which was listed on the SME platform in July last year after it had remained in the over-the-counter market for a decade, posted a 354 per cent profit growth in FY23.
Company secretary Md Shahedul Islam attributed the growth of Yousuf Flour, a manufacturer, seller & supplier of flour and suzi in the local and foreign markets, to higher sales and higher selling prices.
The selling price of flour nearly doubled year-on-year to Tk 65-70 per Kg in FY23, according to the Trading Corporation of Bangladesh.
Agro businesses in despair
Oryza Agro Industries, which manufactures and markets fish and poultry feed, witnessed the highest profit decline year-on-year of 67 per cent to Tk 27 million in FY23.
Company secretary Bayazied Hossain said the sharp depreciation of the taka against the dollar, raw material price hikes as well as falling demand led to the profit erosion.
Around 70 per cent of the raw materials of poultry feed, for example maize and soyabean meal, are imported. International market prices of poultry feed ingredients were up more than 20 per cent in FY23, from a year ago.
Besides, local currency lost its value against the dollar about 30 per cent during the period, making imports costlier.
An increase in local transportation costs, electricity and gas prices and employees' wages added to the financial pain.
Krishibid Seed, a sister concern of the Krishibid Group, reported a 23 per cent profit decline in FY23, compared to FY22, owing to a drop in revenue.
The company's business is centred on production and import of quality seeds, such as hybrid rice and maize potato.
Company secretary Md Kamal Hossain said business was tougher than before because of the stronger dollar. Moreover, production costs had shot up for rising energy prices.
Similarly, Mamun Agro products, which produces insecticide, pesticide and certified seeds, and Master Feed Agrotec, a manufacturer of poultry, fish and cattle feeds, endured a fall in profit for the same reasons mentioned above.
Meanwhile, MK Footwear's earnings per share plummeted as its outstanding shares jumped by 10 million in FY22 after listing. While earnings were at risk of dilution, its revenue slid 5 per cent year-on-year in FY23, dragging the EPS down further.
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