Envoy Textiles reports strong profit growth, recommends 30% cash dividend 

Infographics: TBS

Envoy Textiles Ltd, the world's first LEED-certified green denim manufacturing facility, reported a significant year-on-year profit increase in the fiscal year 2024-25, driven by higher orders from US and European buyers through aggressive marketing efforts.

The company's board of directors has recommended a 30% recorded cash dividend for shareholders for FY 2024-25, up from 20% in the previous year.

According to the disclosure, the company posted a net profit of Tk141 crore, a 165% increase from Tk60 crore in FY 2023-24. Its earnings per share (EPS) rose to Tk8.40, compared to Tk3.58 in the previous fiscal year. The net profit after tax stood at Tk58.32 crore as of June 2025, up from Tk51.93 crore in the same period of the previous year.

The company's annual general meeting (AGM) is scheduled for 6 December through a hybrid system, with the record date fixed on 26 October to identify eligible shareholders. Despite the strong performance, the company's share price fell 2.54% to Tk57.50 on the Dhaka Stock Exchange on Thursday.

M Saiful Islam Chowdhury, company secretary of Envoy Textiles Ltd, attributed the strong fiscal performance to increased purchase orders from international buyers. "Compared to last year, we have received a significantly higher volume of orders, particularly from Europe and the United States. At a time when many companies were struggling with business challenges, we gained much greater acceptance from buyers," he said.

Chowdhury added that the success was driven by two key factors: the company's strong brand value and compliance standards, along with an aggressive marketing strategy. Through active engagement with global buyers and by showcasing its sustainable production practices, Envoy Textiles has gained a competitive advantage. This strategy not only increased order flow but also strengthened the company's position in the global denim market, clearly reflected in its profit growth for FY 2024-25.

Credit Rating Agency of Bangladesh Limited (CRAB) announced Envoy's surveillance rating as "AA1" in the long term and "ST-1" in the short term, with a positive outlook, based on audited financial statements up to 30 June 2024.

As the first denim facility in Bangladesh to use Rope Dyed Technology, Envoy has a production capacity of 4.5 million yards per month. Being a backward-integrated facility, it also operates its own spinning unit, capable of producing 70 tonnes of yarn per day.

As of 31 August, the sponsor and directors jointly hold 65.18% of the company's shares, while institutions hold 24.95%, foreign investors 0.07%, and the public 9.80%.