Lovello declares 20% dividends for FY24
The ice-cream maker plans second unit in Bhaluka factory at Tk150cr
Lovello Ice-cream, a brand of Taufika Foods and Lovello Ice-Cream PLC (a publicly listed company), has declared a 10% cash and 10% stock dividends for its shareholders for the fiscal year 2023-24.
In a disclosure on Thursday, the company's board of directors recommended the dividend. In the previous fiscal, the company paid a 10% cash dividend to its shareholders.
In FY24, the company achieved Tk99.21 crore worth of revenue, which was Tk94.37 crore in the previous fiscal year.
During the year, its net profit stood at Tk12.18 crore, which was Tk10.53 crore a year ago.
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The annual general meeting (AGM) will be held on 30 December via a hybrid platform to secure shareholders' approval of the dividend and audited financial statements. The record date is set for 10 November.
In FY24, the ice cream maker's earnings per share (EPS) increased by 15.32% year-on-year to Tk1.43, and its net asset value (NAV) per share stood at Tk13.37 at the end of June 2024.
The share price of the company closed at Tk94.20 on the Dhaka Stock Exchange on Thursday.
In September this year, the company announced an investment of Tk150 crore to set up a second ice cream manufacturing plant, aiming at boosting production capacity. For the new plant, Lovello has acquired 59.16 decimals of land adjacent to its existing plant in Bhaluka, Mymensingh.
"The investment marks a significant milestone in Lovello's growth," said company secretary Md Moheuddin Sarder. "With this expansion, we plan to more than double our production capacity and reach a larger market segment, in line with our goal of increasing market share."
Once operational, the new plant is expected to produce 2,50,000 litres of ice cream daily, doubling Lovello's current production capacity. The project is scheduled for completion by June 2025.
A senior executive said, "The expansion is a strategic move to strengthen Lovello's market position and support continued growth. We believe it will help us better serve our customers."
Lovello plans to fund the investment through internal resources and bank financing. The company's upcoming earnings call will provide additional details on the project's progress and financial impact.
In 2021, the firm raised Tk30 crore through an initial public offering (IPO) to expand its business.
Up to 30 September 2024, sponsors and directors held 41.12%, institutions 17.88%, and general investors 41% of the company's shares.
According to market insiders, the estimated market size of domestically organised branded ice cream in Bangladesh is around Tk1,400 crore. Its value could reach Tk2,600 crore by 2025.
