Lovello posts 66% profit decline in Q3 of FY25

Taufika Foods and Lovello Ice Cream PLC has reported a 66% drop in net profit for the third quarter (January–March) of the last fiscal year 2024-25.

Despite the third-quarter slump, the company's profit rose 37% in the first nine months of FY25, supported by strong performance in the earlier quarters.

In the January-March period, Lovello reported a profit of Tk2.02 crore with earnings per share (EPS) of Tk0.22, compared to Tk6.01 crore and EPS of Tk0.71 in the same period of the previous year.

During the first nine months (July–March) of FY25, its profit surged to Tk14.84 crore with an EPS of Tk1.59, up from Tk10.85 crore and an EPS of Tk1.28 in the same period of FY24.

The board of Lovello approved the financials on 9 October, despite the mandated time for publishing Q3 financials having expired previously.

According to the price-sensitive information (PSI), Lovello has restated its FY24 financial report, acknowledging that the earlier statements were inaccurately reported.

As of June 2024, the company had reported a net asset value (NAV) of Tk113.64 crore, but after restating its financials, the NAV declined to Tk105.38 crore – indicating that the company had previously overstated its assets for FY24.

In September, to protect the interests of general investors, the Bangladesh Securities and Exchange Commission (BSEC) suspended debit transactions (sales) in three Beneficiary Owners' (BO) accounts over allegations of continued share manipulation involving Taufika Foods and Lovello Ice Cream.

These BO accounts will remain suspended until 31 December 2025. In this regard, on 14 September, the commission issued letters to the DSE, CSE, and CDBL instructing them to take immediate steps to implement the decision.

On Thursday, Lovello's shares closed at Tk97.30 each, down 1.62% from the previous trading session, according to DSE data.