ACI logs Tk445cr loss in Shwapno, foods, plastics, healthcare

ACI PLC's pre-tax loss rose by 20% year-on-year to Tk445 crore in its retail chain Shwapno, as well as its foods, consumer plastics, and healthcare businesses during the July-March period of FY24-25.

However, the conglomerate posted a pre-tax profit of Tk487 crore from its pharmaceuticals, animal health, consumer brands, crop care and public health, motors, pure flour, salt, and flexible packaging segments, up from Tk377 crore a year earlier.

These businesses operate under 12 subsidiaries of Advanced Chemical Industries (ACI), in which the company holds majority stakes, according to its financial statement.  

Despite this, ACI incurred a net consolidated loss of Tk80 crore in the first nine months of FY25, primarily driven by a 42% increase in interest payments due to rising policy rates. Its consolidated loss per share was reported at Tk9.11.

During the July-March period, the group's total revenue reached Tk10,193 crore, up from Tk9,296 crore in the corresponding period of the previous year, reflecting 9.64% growth.  

The company said in its financial statement that was published on its website, during the period, the group achieved a remarkable revenue growth which was contributed by a number of businesses. 

During the period, growth in gross profit exceeded the growth in operating expenses due to cost control initiatives which contributed to the improvement of the operating profit, it said.

On the other hand, cost of borrowing increased due to the increase of interest rate along with the additional funding for working capital and strategic investments for supporting business growth, the report noted.

As of March, ACI's total liabilities amounted to Tk9,761.59 crore, which was 14% higher from the previous year at the same time.
Segment-wise performance  

ACI demonstrated mixed financial performance across its diverse business sectors during the first three quarters of FY25.

The motor business emerged as the highest revenue contributor, generating Tk2,614 crore with 16% growth in the sector. However, profit before tax in this segment dropped by 11%, standing at Tk157.68 crore. 

Shwapno experienced 19% revenue growth, earning Tk1,984 crore during the period. Despite this, the segment reported a significant pre-tax loss of Tk196 crore.  

The pharmaceuticals segment reported revenue of Tk1,365 crore, a 10% increase compared to the same period of the previous year. Profit before tax in this segment jumped 67%, reaching Tk160 crore.  

In other sectors, the conglomerate generated the following revenues: Tk435 crore from animal health, Tk824 crore from consumer brands, Tk322 crore from crop care and public health, Tk528 crore from pure flour, Tk240 crore from salt, Tk759 crore from foods, Tk496 crore from flexible packaging, Tk226 crore from consumer plastics, and Tk98 crore from healthcare.  

The healthcare segment was the most loss-making business, incurring a pre-tax loss of Tk219 crore. Additionally, the foods and consumer plastics segments also reported losses during the July-March period of FY25.