ACI trims quarterly losses as strong segments lift consolidated profit

Advanced Chemical Industries (ACI PLC) reported a turnaround in Q1 of FY2025-26, posting a pre-tax profit of Tk75.01 crore compared to Tk6.6 crore in the same period last year.

The group improved pre-tax profit in segments like pharmaceuticals, animal health, consumer brands, motors, and salt, reversing a Tk24.55 crore reportable segment level loss in the same quarter of FY2024-25.

On the other hand, the loss-making segments, including retail chain Shwapno, food, consumer plastics, and healthcare, experienced 6% year-on-year decline in pre-tax loss, which fell to Tk145.54 crore during the July-September quarter of FY26.

The result reflects a combination of performance across its retail chain, Shwapno, and its food products, consumer plastics, and healthcare operations, according to the company's quarterly financial statements.

In contrast, ACI's pharmaceuticals, animal health, consumer brands, crop care and public health, motors, pure flour, salt, and flexible packaging units delivered a pre-tax profit of Tk51.85 crore, compared to a Tk24.55 crore loss in the same quarter of FY25.

These businesses operate under 12 subsidiaries where ACI holds majority stakes.

Supported by stronger contributions from its profitable portfolios, ACI returned to a consolidated net profit of Tk3.40 crore in Q1 FY26, recovering from a Tk42.35 crore loss a year earlier. Consolidated earnings per share stood at 39 paisa at the end of September.

The group's total revenue rose to Tk3,696 crore during the quarter, up 24.4% from Tk2,971 crore in Q1 FY25, reflecting broad-based growth.

Segment-wise performance 

ACI demonstrated mixed results across its diverse business sectors. The motor business emerged as the highest revenue contributor, generating Tk950 crore with 25% growth, while pre-tax profit in this segment rose by 28% to Tk58 crore. 

ACI operates its motor business through its subsidiary, ACI Motors Limited, in which it holds a 48.10% stake. The company imports, assembles, and sells vehicles for agricultural and non-agricultural use and also distributes Yamaha motorcycles and parts in Bangladesh through an agreement with India Yamaha Motor Private Ltd.

The retail chain Shwapno recorded a 27% increase in revenue, earning Tk717 crore during the quarter, yet it reported a significant pre-tax loss of Tk65 crore. The pharmaceuticals segment saw revenues rise to Tk570 crore, a 41% increase from Tk404 crore in the same quarter last year, while pre-tax profit more than doubled to Tk83 crore, reflecting a 114% increase.

Other segments contributed to the group's performance as follows: the animal health business generated Tk165 crore, consumer brands Tk300 crore, crop care and public health Tk101 crore, pure flour Tk167 crore, salt Tk92 crore, foods Tk254 crore, flexible packaging Tk168 crore, consumer plastics Tk70 crore, and healthcare Tk24 crore. 

Among these, the healthcare segment remained the most loss-making, incurring a pre-tax loss of Tk72 crore.