Maksons Spinning logs Tk406cr loss over three years
Company discloses loss per share of Tk9.42 for FY25
The situation at Maksons Spinning Mills, a listed textile firm, has worsened as its accumulated losses surged to Tk406 crore over the last three years, with the highest loss of Tk224.41 crore recorded in FY25.
Once a regular profit-maker and generous dividend payer, the spinner is now struggling as its revenue has fallen sharply, pushing it deeper into losses.
Due to consecutive losses, Maksons Spinning Mills has failed to recommend any dividends for its shareholders, with the last payout being a 10% cash dividend for the year ended June 2022.
Amid this failure to pay dividends, its shares were downgraded to the Z category last year.
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On Monday (15 December), the company disclosed through the stock exchanges a loss per share of Tk9.42 for FY25, up from Tk3.69 in the previous fiscal year.
Its financial statements are yet to be published, but calculations based on total outstanding shares indicate a net loss of Tk224 crore for FY25, significantly higher than the Tk87 crore loss in FY24.
Mohd Younus Bhuiyan, chief financial officer of Maksons Spinning Mills, told The Business Standard, "We have been facing difficulties in opening letters of credit to import raw materials over the past year due to banking complexities."
When asked whether the factory is currently closed, he said it remains operational, fulfilling some orders on a subcontracting basis.
According to previous financial statements, the company has faced significant challenges, including high inflation, increased raw material costs, higher utility expenses, rising labour costs, and adverse foreign exchange rates.
A decline in unit prices of finished goods, combined with escalating costs of raw materials, labour, operations, and utilities, has eroded profitability, collectively contributing to negative earnings.
Significant falls in revenue
The company has yet to publish its FY25 financials. Its previous five-year statements showed an average annual revenue of around Tk500 crore from FY20 to FY24.
However, in the first nine months of FY25, revenue stood at Tk172 crore, a 58% year-on-year decline from Tk409 crore in the same period of FY24. Before financial expenses, the loss was Tk14.68 crore, which increased to Tk100 crore after Tk85.66 crore in loan expenses.
By the end of the nine-month period (July 2024-March 2025), total losses reached Tk109.74 crore. With a total FY25 loss of Tk224 crore, over half of the loss was incurred in the final quarter (April-June).
At the end of Q3, the company owed around Tk488 crore in loans, including Tk326.92 crore in short-term loans and Tk161 crore in long-term loans.
Annual General Meeting
The company has scheduled its annual general meeting (AGM) for 24 February through a hybrid system combining digital and physical presence. The record date to identify shareholders has been fixed for 7 January.
Maksons reported negative net operating cash flow per share of Tk5.82 and a net asset value per share of Tk2.84, compared with negative Tk2.57 and Tk12.29 previously. On Monday, its shares closed at Tk5.30, down 1.85% from the previous session.
Incorporated in 2003, Maksons Spinning Mills Limited is one of Bangladesh's pioneering spinning companies. It was listed on the stock exchanges in 2009 through an initial public offering (IPO).
The company has a capacity of 100,680 spindles with state-of-the-art machinery imported from Japan, China, India, Italy, the US, Germany, Switzerland, and Taiwan. It produces yarn for export with an annual production capacity of 21.25 million kilograms.
Maksons manufactures 20/1 to 80/1 count 100% cotton yarn, organic yarn, combed yarn, Supima yarn, and high-quality compact yarn.
